Gold price today: Rates hit fresh record high on Fed rate cut hopes; experts highlight key MCX levels to watch

Gold price today: Rates of gold hit fresh record highs in morning trade on the MCX on Tuesday (October 7) due to sustained safe-haven demand amid expectations of further rate cuts by the US Federal Reserve.

MCX Gold December futures hit a record high of ₹1,20,900 per 10 grams. Around 11:45 am, the yellow metal was 0.22 per cent up at ₹1,20,510 per 10 grams, while MCX Silver December futures were 0.03 per cent down at ₹1,47,475 per kg.

International gold prices also reached their record high due to increased economic and political uncertainties in the US, while expectations of further US Fed rate cuts remain a key trigger for the yellow metal.

The US shutdown has raised the risk of more job losses, even as the standoff is expected to stretch into a seventh day. As Reuters reported, the standoff has frozen approximately $1.7 trillion in funds for agency operations, which amounts to roughly one-quarter of the annual federal budget.

Meanwhile, markets are pricing in an additional 25 basis points of US Fed rate cuts in both October and December this year.

Investors' focus is on the FOMC meeting minutes, the Fed chair’s speech, China’s reopening after the holiday, and updates regarding the US shutdown.

Domestic spot gold prices have surged by over 55 per cent this year so far, driven by increased demand from retail investors amid geopolitical tensions, tariff-related uncertainties, a weaker dollar, and aggressive central bank buying.

"Solid demand from the ETF investors in gold and silver is supporting prices. Gold ETF buying surged 17 per cent year to date, and silver demand surged 16 per cent year to date amid robust investor inflows. The possibility of two more rate cuts of 25 basis points each this year by the US Fed is also supporting prices of gold and silver," said Manoj Kumar Jain of Prithvifinmart Commodity Research.

Experts highlight key MCX levels to watch

"Gold prices have hit new record highs, with futures reaching $4,000 an ounce on the Comex. This surge comes as the US government shutdown stretches into its sixth day, and political turmoil in France adds to global uncertainty," Darshan Desai, CEO of Aspect Bullion and Refinery, observed.

"A combination of retail and institutional buying, along with ongoing hopes for a Federal Reserve rate cut, despite the lack of key economic data, is keeping upward pressure on prices. If gold does pull back from these highs, it could present a buying opportunity for investors looking to enter the market," said Desai.

According to Jain, gold has support at $3,945-$3,920, while resistance is at $4,000-$4,020 per troy ounce, and silver has support at $48.00-$47.70, while resistance is at $48.80-$49.10 per troy ounce in today’s session.

MCX Gold has support at ₹1,19,100- ₹1,18,000 and resistance at ₹1,21,000- ₹1,22,200, while silver has support at ₹1,46,200- ₹1,45,000 and resistance at ₹1,48,800- ₹1,50,000.

“We suggest buying silver around ₹1,47,000 with a stop loss of ₹1,45,400 for the target of ₹1,50,000,” said Jain.

Rahul Kalantri, VP of commodities at Mehta Equities, stated that gold has support at $3,920-$3,880, while resistance is located at $3,990-$4,025. Silver has support at $48.10-$47.70 while resistance is at $48.90-$49.30.

In INR, gold has support at ₹1,19,600 and ₹1,19,280, while resistance is at ₹1,20,850 and ₹1,21,400. Silver has support at ₹1,46,450 and ₹1,45,850 while resistance is at ₹1,48,550 and ₹1,49,450, said Kalantri.

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