Gold price today: Rates rise as focus shifts to US inflation prints; experts reveal key levels for MCX Gold

Gold price today: Gold rates moved up in the domestic futures market Monday morning, but the gains remained capped as investors awaited US inflation numbers to get further cues on the magnitude of the rate cut this month.

After weaker jobs number, investors' focus is now on the August US Consumer Price Index (CPI), due on Wednesday, followed by the Producer Price Index (PPI) on Thursday, to gauge the size and extent of the US Fed rate cut cycle which is expected to start September 18.

In the international markets, gold prices were subdued as investors restricted their bets ahead of key macro numbers. While rate cuts are positive for gold prices, experts believe the market has already discounted a 25 bps rate cut, which may not give a major boost to yellow metal prices.

According to a Reuters report quoting the CME FedWatch Tool, Fed funds futures traders are now pricing a 69 per cent chance of a 25-basis-point cut and a 31 per cent chance of a 50 bp reduction at the Fed's September 17-18 meeting.

MCX Gold traded 0.20 per cent up at ₹71,565 per 10 grams around 9:20 am.

Strategy for MCX Gold today

Gold prices witnessed very high volatility last week and plunged amid mixed US economic data, ahead of the US CPI inflation data this week.

Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold prices to remain volatile this week amid volatility in the dollar index, volatility in the global financial markets and ahead of the US inflation data and expects it to hold its support level of $2,464 per troy ounce on a weekly closing basis.

"Gold has support at $2,510-2,488, while resistance is at $2,544-2,558 per troy ounce in today’s session. On the MCX, gold has support at ₹71,180-70,850 and resistance at ₹71,770-72,040. We suggest staying away from gold and silver in today's session due to the high volatility in global financial markets," said Jain.

According to Aiyub Yacoobali, Chairman and Managing Director of South Gujarat Shares And Sharebrokers, with a weak dollar index, volatility remains at a peak in MCX Gold.

"Trading above ₹72,350 will see further upward momentum for a possible upward range of ₹73,508 – 73,828. On the downside, ₹71,675 – 71,334 will act as a major support zone," Yacoobali.

According to Motilal Oswal Financial Services, gold may trade within a range of ₹71,000 – 72,000 for today's session, with support at ₹71,250-71,000 and resistance at ₹71,750-71,950.

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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.