Gold price today: Yellow metal falls after healthy US jobs data; experts highlight key levels for MCX Gold rate

Gold prices fell in the domestic futures market due to weak global signals and a stronger dollar. A robust US jobs report diminished hopes for a rate cut by the US Fed in November.

Nishant Kumar
Updated7 Oct 2024, 09:40 AM IST
Gold price today: Yellow metal falls after healthy US jobs data; experts highlight key levels for MCX Gold rate REUTERS/Toru Hanai (JAPAN)
Gold price today: Yellow metal falls after healthy US jobs data; experts highlight key levels for MCX Gold rate REUTERS/Toru Hanai (JAPAN)(Reuters)

Gold price dropped significantly in the domestic futures market Monday morning, tracking weak global cues and gains in the dollar. Moreover, a strong US jobs report punctured expectations of a 50 bps rate cut by the US Fed in November.

MCX Gold for December 5 contracts traded 0.21 per cent lower at 75,980 per 10 grams around 9:10 am.

As Reuters reported, the US job gains increased by the most in six months in September, and the unemployment rate fell to 4.1 per cent. This indicated the US economy was in good shape and the US Fed need not go aggressively on rate reduction.

According to CME's FedWatch tool, the market now sees a 95 per cent chance that the Fed will cut rates by only 25 bps in November.

Healthy macro numbers strengthened the US dollar, which weighed on the yellow metal. Since gold is priced in the dollar in the international markets, a rise in the US currency makes bullion expensive in other currencies.

Also Read | Gold subdued as US jobs data firms bets for smaller rate cut

Investors are now turning their attention to the release of the US Fed's last meeting minutes on Wednesday, October 9. Then, on Thursday, the US Consumer Price Index (CPI) data for September will be released, followed by the Producer Price Index (PPI) data on Friday.

Comments of several US Fed officials, who are speaking this week, will also be in focus.

Gold tends to gain in a low-interest-rate environment and during political and economic uncertainty.

At the current juncture, the escalating situation in the Middle East is a key positive for gold. If the Israel-Iran war escalates further, it could deal a severe blow to riskier equities and trigger a hectic buying of safe haven assets.

However, dwindling hopes of a deeper rate cut and the dollar's rise could limit gold's gains.

Also Read | RBI Policy, Q2 Results, Israel-Iran war, FII activity to guide markets this week

Key levels for MCX Gold today

Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold and silver prices to remain volatile this week amid volatility in the dollar index and geopolitical tensions. However, on a weekly closing basis, they are expected to hold their support level of $2,600 and $30.88 per troy ounce.

"Gold has support at $2,658-2,644, while resistance at $2,688-2,704 per troy ounce and silver has support at $32.15-31.80, while resistance is at $32.70-33 per troy ounce in today’s session," said Jain.

"On the MCX, gold has support at 75,850-75,600 and resistance at 76,500-76,740 while silver has support at 92,500-91,800 and resistance at 94,200-95,100," Jain said.

Jain suggests buying gold on dips around 75,850 with a stop loss of 75,500 for the target of 76,400 and silver around 92,800 with a stop loss of 91,950 for the target of 95,000.

According to Rahul Kalantri, VP of commodities at Mehta Equities, gold has support at $2,631-$2,610, with resistance at $2,662-$2,678. Silver has support at $31.82-$31.68 and resistance at $32.35-$32.52.

In the Indian rupee terms, gold has support at 75,880- 75,670, with resistance at 76,450- 76,650. Silver has support at 92,850- 92,050, while resistance is at 94,130- 94,980, said Kalantri.

Read all market-related news here

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.

 

Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

MoreLess
First Published:7 Oct 2024, 09:40 AM IST
Business NewsMarketsCommoditiesGold price today: Yellow metal falls after healthy US jobs data; experts highlight key levels for MCX Gold rate

Most Active Stocks

Tata Steel share price

147.55
03:59 PM | 8 NOV 2024
-3.35 (-2.22%)

Tata Motors share price

805.70
03:58 PM | 8 NOV 2024
-14.1 (-1.72%)

Indian Hotels Company share price

733.05
03:51 PM | 8 NOV 2024
49.45 (7.23%)

Ashok Leyland share price

222.00
03:59 PM | 8 NOV 2024
6.2 (2.87%)
More Active Stocks

Market Snapshot

  • Top Gainers
  • Top Losers
  • 52 Week High

Page Industries share price

47,987.80
03:53 PM | 8 NOV 2024
2882.3 (6.39%)

National Aluminium Company share price

238.70
03:57 PM | 8 NOV 2024
0.15 (0.06%)

Federal Bank share price

206.05
03:29 PM | 8 NOV 2024
0.05 (0.02%)

Apollo Hospitals Enterprise share price

7,409.05
03:29 PM | 8 NOV 2024
-15.55 (-0.21%)
More from 52 Week High

Aarti Industries share price

474.75
03:59 PM | 8 NOV 2024
-40.3 (-7.82%)

Signatureglobal India share price

1,274.45
03:29 PM | 8 NOV 2024
-107.95 (-7.81%)

Great Eastern Shipping Company share price

1,200.50
03:29 PM | 8 NOV 2024
-90.45 (-7.01%)

GMM Pfaudler share price

1,282.90
03:29 PM | 8 NOV 2024
-92 (-6.69%)
More from Top Losers

Indian Hotels Company share price

733.05
03:51 PM | 8 NOV 2024
49.45 (7.23%)

Vijaya Diagnostic Centre share price

1,098.90
03:29 PM | 8 NOV 2024
71.45 (6.95%)

Motilal Oswal Financial Services share price

996.05
03:59 PM | 8 NOV 2024
61.85 (6.62%)

One 97 Communications share price

848.15
03:58 PM | 8 NOV 2024
52.35 (6.58%)
More from Top Gainers

Recommended For You

    More Recommendations

    Gold Prices

    • 24K
    • 22K
    Bangalore
    79,485.00910.00
    Chennai
    79,491.00910.00
    Delhi
    79,643.00910.00
    Kolkata
    79,495.00910.00

    Fuel Price

    • Petrol
    • Diesel
    Bangalore
    102.92/L0.00
    Chennai
    100.80/L0.00
    Kolkata
    104.95/L0.00
    New Delhi
    94.77/L0.00

    Popular in Markets

      HomeMarketsPremiumInstant LoanMint Shorts