Gold price today: MCX Gold rate rises with Fed Chair Jerome Powell’s comments, Middle East tensions in focus

Gold price today: Gold rates rose in the domestic futures market Monday morning, with investors' focus shifting to the US Fed Chair Jerome Powell's comments and geopolitical developments in the Middle East.

MCX Gold traded 0.30 per cent higher at ₹75,945 per 10 grams around 9:45 am.

Gold prices have seen healthy gains in the domestic and international markets lately, primarily driven by optimism about the US Fed rate cut and tensions in the Middle East.

The US Fed started its rate reduction cycle by cutting benchmark rates by 50 bps on September 12. Hopes are rife that the central bank will cut rates by another 75-100 bps this year.

Rising tensions after Israel's attacks on Iranian-backed forces in the Middle East are also influencing gold prices. Israel killed Hezbollah leader Sayyed Hassan Nasrallah in Beirut and has increased attacks in the region.

According to a Reuters report, “Israel's increased attacks against Hezbollah in Lebanon and Houthi in Yemen have prompted fears that Middle East fighting could spin out of control and draw in Iran and the United States.”

Geopolitical tensions, economic uncertainty and rate cuts are positive triggers for gold prices.

"Gold is nearing $2,700 per troy ounce, and silver recently hit its highest level in 11 years. Gold and silver are gaining strength because of interest rate cuts by central banks worldwide, stimulus efforts from China, and rising global tensions," said Rahul Kalantri, the VP of commodities at Mehta Equities.

The immediate trigger for gold is comments from Powell and Fed Governor Michelle Bowman, due later today, which could give significant hints on interest rate trajectory and inflation.

Experts' strategy for MCX Gold, Silver today

According to Kalantri, gold has support at $2,651-2,640 while resistance is at $2,684-2,699. Silver has support at $31.42-31.24 while resistance is at 31.87-32.05. In INR terms, gold has support at ₹74,750-74,570, while resistance is at ₹75,190-75,380. Silver has support at ₹90,850-90,150, while resistance at ₹91,990-92,680.

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, and the Fed Chairman’s speech.

Jain believes that, on a weekly closing basis, they are expected to hold their support levels of $2,600 and $30.40 per troy ounce, respectively, and any correction due to profit-taking in gold and silver could be a buying opportunity at lower levels.

"Gold has support at $2,664-2,650, while resistance at $2,696-2,720 per troy ounce and silver has support at $31.64-31.40, while resistance is at $32.20-32.50 per troy ounce in today’s session. On the MCX, gold has support at ₹75,440-75,200 and resistance at ₹76,000-76,330, while silver has support at ₹90,650-90,000 and resistance at ₹92,100-92,750," said Jain.

Jian suggests buying silver on dips around ₹90,800 with a stop loss of ₹90,150 for the target of ₹92,100.

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Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.