Gold rate today: Gold price trades lacklustre after US inflation prints; US Fed meeting in focus

Gold rate today: Experts expect gold prices to experience volatility this week, reacting to the US macro numbers, the dollar's movement, and speculations regarding the US Fed.

Nishant Kumar
Updated12 Sep 2024, 10:01 AM IST
Gold rate today: Gold price trades lacklustre after US inflation prints, US Fed meeting in focus //Photo by Priyanka Parashar
Gold rate today: Gold price trades lacklustre after US inflation prints, US Fed meeting in focus //Photo by Priyanka Parashar(Priyanka Parashar)

Gold prices traded lacklustre in the early deals in the domestic futures market Thursday morning after the US inflation prints poured cold water on hopes of a 50 bps rate cut by the US Fed.

In international markets, gold prices traded flat after the US consumer prices data release. Traders have shifted their focus towards the US Producer Price Index data and initial jobless claims data, which are due later today. The recent macro data are expected to influence the US Fed's policy decision on September 18.

The US consumer price index (CPI) rose 0.2 per cent last month, matching the advance in July. However, core inflation climbed 0.3 per cent, rising from July's 0.2 per cent increase.

Also Read | What the gold rally says about market uncertainty

"While headline CPI met expectations at 0.2 per cent month-on-month and was up 2.5 per cent year-on-year, core CPI was higher than expected (0.3 per cent month-on-month versus 0.2 per cent expected) and was up 3.2 per cent year-on-year. The market pricing in a 50bps cut in September cut has virtually been erased. However, the market is still pricing at least 100bps of cuts in total by end-2024. With this being a cautious and data-driven Fed, a 25bps cut is now virtually locked in for next week," said Madhavi Arora, chief economist at Emkay Global Financial Services.

Also Read | US Fed rate cut ahead: What does it mean for investors?

The US dollar rose after the US inflation data showed signs of stickiness and dimmed the prospects of a deeper rate cut. This weighed on gold prices.

MCX Gold traded 0.03 per cent up at 71,950 per 10 grams around 9:30 am.

Also Read | US Fed rate cut: Can a 25 bps cut disappoint the Indian stock market?

Experts share strategy for MCX Gold today

Experts expect gold prices to witness volatility this week, reacting to the US macro numbers, the dollar's movement and speculations regarding the US Fed. They say MCX Gold is witnessing time correction, and the violation of the support and resistance zone will lead to fresh momentum.

According to Manoj Kumar Jain of Prithvifinmart Commodity Research, gold and silver prices may remain volatile this week. However, he expects them to hold their support level of $2,464 and $26.80 per troy ounce, respectively, on a weekly closing basis.

"Gold has support at $2,522-2,510, while resistance at $2,558-2,572 per troy ounce and silver has support at $28.60-28.34, while resistance is at $29.24-29.55 per troy ounce in today’s session," said Jain.

"On the MCX, gold has support at 71,700-71,440 and resistance at 72,200-72,500, while silver has support at 83,800-83,100 and resistance at 85,200-86,000. We suggest buying gold on dips around 71,650 with a stop loss of 71,400 for the target of 72,200," Jain said.

Also Read | Fed rate cut: How will it impact gold prices in near term? Experts weigh in

Aiyub Yacoobali, Chairman and Managing Director of South Gujarat Shares And Sharebrokers, observed that MCX Gold is enjoying a time correction with the dollar index.

"Volatility in the dollar index is reducing; hence, MCX Gold is witnessing rangebound sessions. On the downside, 71,174 – 70,736 will be a major support zone. Fresh supply is possible only below this zone. Fresh upward momentum is possible only if MCX Gold trades above 72,062 – 72,349 zone," said Yacoobali.

Rahul Kalantri, VP of commodities at Mehta Equities, pointed out that the ECB is holding a monetary policy meeting today, and potential interest rate cuts could further support gold and silver prices.

"Gold is finding support at $2,495–2,480, with resistance at $2,530–2,542. Silver has support at $28.35–28.10, while resistance is at $28.82–28.98. In INR terms, gold has support at 71,710–71,550, with resistance at 72,100–72,250. Silver has support at 83,770–83,150, while resistance stands at 84,950–85,550," 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:12 Sep 2024, 10:01 AM IST
Business NewsMarketsCommoditiesGold rate today: Gold price trades lacklustre after US inflation prints; US Fed meeting in focus

Most Active Stocks

Axis Bank share price

1,181.30
03:29 PM | 4 OCT 2024
5.85 (0.5%)

Tata Steel share price

166.75
03:56 PM | 4 OCT 2024
-0.2 (-0.12%)

Oil & Natural Gas Corporation share price

295.20
03:58 PM | 4 OCT 2024
3.1 (1.06%)

Tata Motors share price

930.70
03:56 PM | 4 OCT 2024
4.7 (0.51%)
More Active Stocks

Market Snapshot

  • Top Gainers
  • Top Losers
  • 52 Week High

Mahindra & Mahindra Financial share price

301.65
03:29 PM | 4 OCT 2024
-20.5 (-6.36%)

Kfin Technologies share price

1,015.00
03:29 PM | 4 OCT 2024
-63.85 (-5.92%)

Godrej Properties share price

2,897.70
03:57 PM | 4 OCT 2024
-170.55 (-5.56%)

Adani Energy Solutions share price

963.45
03:58 PM | 4 OCT 2024
-52.75 (-5.19%)
More from Top Losers

VIP Industries share price

563.85
03:57 PM | 4 OCT 2024
40.8 (7.8%)

Oil India share price

572.25
03:59 PM | 4 OCT 2024
33.4 (6.2%)

JK Paper share price

489.95
03:43 PM | 4 OCT 2024
27.1 (5.86%)

Home First Finance Company India share price

1,245.35
03:40 PM | 4 OCT 2024
63.15 (5.34%)
More from Top Gainers

Recommended For You

    More Recommendations

    Gold Prices

    • 24K
    • 22K
    Bangalore
    77,685.000.00
    Chennai
    77,691.000.00
    Delhi
    77,843.000.00
    Kolkata
    77,695.000.00

    Fuel Price

    • Petrol
    • Diesel
    Bangalore
    102.86/L0.00
    Chennai
    100.75/L0.00
    Kolkata
    104.95/L0.00
    New Delhi
    94.72/L0.00

    Popular in Markets

      HomeMarketsPremiumInstant LoanMint Shorts