Gold rate today: Rate moves higher with US Fed rate cut in focus; experts reveal strategy for MCX Gold

Gold rate today: In international markets, spot gold prices jumped to a record high of $2,588.81 on Monday due to a softer dollar and expectations of a significant US Fed interest rate cut.

Nishant Kumar
Updated16 Sep 2024, 11:09 AM IST
Gold rate today: Rate moves higher with US Fed rate cut in focus; experts reveal strategy for MCX Gold REUTERS/Toru Hanai (JAPAN)
Gold rate today: Rate moves higher with US Fed rate cut in focus; experts reveal strategy for MCX Gold REUTERS/Toru Hanai (JAPAN)(REUTERS)

Gold rate today: Gold prices moved higher in the domestic futures market Monday morning, tracking positive global cues and the dollar's weakness ahead of the US Fed policy outcome on Wednesday, September 18.

In international markets, spot gold prices jumped to a record high of $2,588.81 on Monday due to a softer dollar and expectations of a significant US Fed interest rate cut. Comex Gold also jumped to a 52-week high of $2,616 per troy ounce.

Investors' focus is now on the Federal Reserve as speculation mounts regarding the magnitude of its interest rate cuts and the pace of further reductions. The market has discounted a 25 bps rate cut, but some experts believe the US central bank may announce a 50 bps cut this time.

According to Reuters, this would be the Fed's first rate cut since 2020. Markets are currently pricing in a 59 per cent chance of a 50 bps cut on Wednesday, up from 43 per cent on Friday, according to the CME FedWatch tool.

MCX Gold traded 0.22 per cent higher at 73,680 per 10 grams around 10:30 am.

The US Fed rate cut is a crucial trigger for gold prices. Decreasing interest rates is considered negative for interest-bearing assets and positive for bullion, which is considered a store of value.

"Gold prices reached a record high on speculation that the Federal Reserve may lower interest rates by 50 basis points this week. The central bank will likely start an easing cycle this week, with at least 100 basis points of rate decreases by the end of the year," Renisha Chainani, the head of research at Augmont, observed.

Chainani said reports of a second assassination attempt on Republican presidential nominee Donald Trump sparked an interest in safe havens, even though Trump seemed unscathed and the perpetrator was captured.

"If gold continues its upward trajectory, it will face resistance at the psychologically critical level of $2,600 (nearly 75,000). Support for a pullback is $2,500 (about 71,000)," said Chainani.

Also Read | Gold price climbs 26% in YTD. Should you book profit or wait for Fed’s rate cut

Expert strategy for MCX Gold

Rahul Kalantri, VP of commodities at Mehta Equities, expects gold and silver prices to remain buoyant in today's session, supported by a soft dollar index, a rebound in crude oil prices, and a likelihood of maintaining their support levels of $2,550 and $30 per troy ounce, respectively, on a weekly closing basis.

"Gold is expected to find support between $2,562 and $2,544, with resistance in the range of $2,598 to $2,612. Silver is supported between $30.65 and $30.40, while resistance lies between $31.20 and $31.50. In INR terms, gold has support at 73,310 to 73,150, with resistance from 73,790 to 73,970. Silver finds support between 88,770 and 88,250, with resistance ranging from 90,250 to 90,780," said Kalantri.

Also Read | Gold and silver prices today on 16-09-2024: Check latest rates in your city

According to Motilal Oswal Financial Services, gold may trade within a range of 73,000 – 74,000 in the domestic market, with support at 73,300-73,100 and resistance at 73,800-74,000.

SMC Global Securities expects gold to trade in the range of 73,300-73,800, and silver may trade in the range of 88,900-89,900, with sideways to bullish bias.

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.

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First Published:16 Sep 2024, 11:09 AM IST
Business NewsMarketsCommoditiesGold rate today: Rate moves higher with US Fed rate cut in focus; experts reveal strategy for MCX Gold

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