Gold price today: Rates drop on profit booking amid dollar's rise; is it the right time to buy bullion?

Gold price today: Rates of gold and silver dropped during Wednesday's session on profit booking at higher levels amid a rise in the US dollar and tepid spot demand. MCX Gold October futures traded 0.19 per cent lower at ₹1,13,624 per 10 grams around 2:40 pm, while MCX Silver December futures traded 0.10 per cent down at ₹1,34,930 per kg at that time.

The dollar index rose by about 0.10 per cent, making gold expensive in other currencies, creating a demand fatigue.

US Federal Reserve Chair Jerome Powell's cautious remarks on potential interest rate cuts also weighed on gold prices.

Powell, according to Reuters, said on Tuesday that the central bank needed to focus on balancing the risks of high inflation and a weakening job market.

As per a Reuters report, the CME FedWatch tool indicated the market is pricing in two more rate cuts of 25 basis points each this year, with a 93 per cent probability in October and a 77 per cent probability in December.

The focus is now on the US weekly initial jobless claims report on Thursday, and the personal consumption expenditures (PCE) index on Friday.

Gold on a solid bull run

In the previous session, MCX Gold October futures closed 1.40 per cent higher at ₹1,13,800 per 10 grams after hitting a record high of ₹1,14,179 during the session. Similarly, MCX Silver December futures ended 1.08 per cent up at ₹1,35,000 per kg after hitting an all-time high of ₹1,35,700 earlier in the session.

Spot gold prices in India have surged 50 per cent year-to-date (YTD), while the yellow metal has jumped about 54 per cent over the last year.

Gold’s journey in India has been dazzling: from ₹50,250 per 10 grams on 23 September 2020 to almost ₹1,14,000 on the same date in 2025. Hence, over the last five years, gold has clocked a lofty gain of nearly 130 per cent.

Geopolitical tensions, concerns over a slowdown in global economic growth, and aggressive central bank buying have been the key drivers of gold prices.

Is it the right time to buy gold?

Experts expect gold prices to experience some volatility. Nevertheless, they suggest buying the previous metal as the long term outlook remain healthy due to the prospects of rate cuts and global uncertainties.

"We expect gold and silver prices to remain volatile this week amid volatility in the dollar index, volatility in the global financial markets and ahead of the US core PCE price index data. We suggest buying gold around ₹1,12,500 with a stop loss of ₹1,11,880 for the target of ₹1,14,400 and wait for some corrective dips in the silver for initiating fresh long positions," said Manoj Kumar Jain of Prithvifinmart Commodity Research.

Jain said gold has support at $3,784-3,755, while resistance is at $3,840-3,864 per troy ounce. Silver has support at $44.20-43.80, while resistance is at $45.00-45.50 per troy ounce in today’s session.

MCX Gold has support at ₹1,13,200-1,12,650 and resistance at ₹1,14,200-1,14,800, while silver has support at ₹1,33,600-1,32,400 and resistance at ₹1,36,600-1,38,000, said Jain.

According to Rahul Kalantri, VP of commodities at Mehta Equities, gold has support at $3,715-3,685 while resistance is at $3,775-3,790. Silver has support at $43.40-43.00 while resistance is at $44.15-44.50.

In INR gold has support at ₹1,13,000-1,12,380 while resistance is at ₹1,14,450-1,14,900. Silver has support at ₹1,33,450-1,32,750 while resistance is at ₹1,35,850, 1,36,600, said Kalantri.

Analysts at Motilal Oswal see support for MCX Gold at ₹1,13,170, followed by ₹1,12,850. Resistance is at ₹1,13,780, followed by ₹1,14,070. MCX Silver has support at ₹1,34,000 and ₹1,33,300, while resistance is at ₹1,35,400 and ₹1,36,000, according to the brokerage firm.

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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.