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Business News/ Markets / Commodities/  Gold price today: Gold rates move higher on MCX; what should be your strategy for MCX Gold today?
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Gold price today: Gold rates move higher on MCX; what should be your strategy for MCX Gold today?

Gold price today: Gold prices hit a record high in the previous session in international markets, supported by ongoing geopolitical tensions and renewed concerns over inflation.

Gold price today: Gold prices have been gaining of late on rising geopolitical tensions and renewed concerns over inflationary pressure due to economic revival. (Image: Pixabay) (Pixabay)Premium
Gold price today: Gold prices have been gaining of late on rising geopolitical tensions and renewed concerns over inflationary pressure due to economic revival. (Image: Pixabay) (Pixabay)

Gold price today: Gold prices witnessed decent gains in the domestic futures market's morning trade on Wednesday, April 10, tracking positive global cues. MCX Gold for June 5 delivery traded 0.44 per cent higher at 71,652 per 10 grams around 11:20 am.

Gold prices hit a record high in the previous session in international markets, supported by ongoing geopolitical tensions and renewed concerns over inflation. Silver prices rose to their three-year peaks in the international markets.

“Strong central bank buying, safe-haven inflows amid elevated geopolitical risks, and demand from momentum-following funds have fuelled bullion's 14 per cent gain so far this year," reported Reuters.

Also Read: Why are gold and US dollar rates moving in same direction? — explained

Gold prices can rise even further if the US inflation prints on Wednesday boost the prospects of Fed rate cuts earlier than expected.

According to a Reuters poll, the US consumer price index (CPI) for March may rise to 3.4 per cent year-on-year, while the core CPI may slow to 3.7 per cent. Recent strong US macro data, including the US jobs report, and comments from Fed officials have indicated the rate cuts could be delayed.

Also Read: Oil prices ease for second day over Gaza ceasefire talks, Brent dips to $89: Analysts peg near-term range at $85-95/bbl

“Federal Reserve Bank of Atlanta President Raphael Bostic reiterated his expectation for one interest-rate cut this year. Interest rate futures are now pricing no rate cuts for May, indecisive with June and discounting a full quarter-point cut for July. Now all eyes are on the US CPI data and FOMC meeting minutes due later today," said Kaynat Chainwala, Senior Manager – Commodity Research, Kotak Securities.

Nevertheless, gold prices have been rising due to geopolitical tensions and inflationary pressure.

Also Read: Commodities rally reflects a better economy, but also poses inflation risks

What should be your strategy for gold today?

Experts are of the view that gold prices could remain supported by underlying positive sentiment but investors’ focus would be on US inflation data and the minutes of the Fed's March monetary policy meeting.

Rahul Kalantri, VP of commodities at Mehta Equities pointed out that the prevailing market sentiment is bolstered by robust safe-haven demand amidst geopolitical tensions. The global central banks too continue to exhibit strong demand for gold amid the ongoing trend of de-dollarisation.

“Gold has support at $2,326-2,305, with resistance at $2,368-2,382. For silver, support levels are at $27.85-27.62, while resistance is at $28.32-28.55. In the Indian rupee terms, gold is supported at 70,980 and 70,750, with resistance at 71,580 and 71,790. Silver has support at 81,740-81,080, and resistance levels at 82,940 and 83,780," said Kalantri.

Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold and silver prices to remain volatile this week amid volatility in the dollar index, geopolitical tensions, US inflation data and monetary policy meeting minutes but gold and silver could hold their support levels of $2,260 and $26.40 per troy ounce respectively on a weekly closing basis.

“Gold has support at $2,345-2,320, while resistance at $2,374-2,388 per troy ounce and silver has support at $27.66-27.30, while resistance is at $28.30-28.64 per troy ounce in today’s session," said Jain.

“On the MCX, gold has support at 71,000-70,660 and resistance at 71,600-71,950 while silver has support at 81,800-81,100 and resistance at 83,200-84,000," Jain said.

He suggests buying silver on dips around 81,800-81,500 with a stop loss of 80,750 for the target of 83,200-84,000.

Read all market-related news here

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 10 Apr 2024, 11:43 AM IST
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