Gold Rate Today: Yellow metal gets cheaper on MCX; silver price above ₹81,100 per kg; US inflation data eyed

Gold rate today: Gold prices on MCX traded lower on Wednesday tracking weakness in international gold prices as investors remained on sidelines ahead of the crucial US inflation data later today.

MCX gold price was down by ₹157, or 0.22%, to ₹70,542 per 10 grams, while MCX silver price traded marginally higher by 0.08% to ₹81,110 per kg.

In the international market, gold prices edged lower ahead of a key US inflation print that could set the tone for the Federal Reserve’s September policy meeting. Spot gold eased 0.2% to $2,460.87 per ounce. US gold futures edged 0.3% lower to $2,500.30.

“The trend for gold prices is expected to be positive going ahead on the back of certain supportive factors. The ongoing geopolitical tensions, rising expectations of interest rate cuts in the US, softness in dollar index, and rise in domestic physical demand for the yellow metal are all factors that support the gold rates,” said Ajay Kedia, Director, Kedia Advisory.

According to Kedia, gold prices may find support at ₹68,700 - 70,000 levels and resistance is placed at ₹71,700 - 71,800 levels.

Investors will watch out for the US consumer price index data for July due today. Traders expect a 54% chance of a 50-basis-point US. rate cut in September, according to the CME FedWatch Tool.

Gold, often used as a hedge against geopolitical risks, thrives when interest rates are low.

Silver prices are expected to remain subdued with support seen at ₹79,400 level and resistance placed at ₹84,500 level, Kedia said.

However, the Gold-Silver ratio is coming down which means that silver prices may outperform gold going ahead, he added.

Technicals

Gold is currently trading above the 50-period moving average on the hourly timeframe, but the bullish momentum appears to be losing steam. Despite the price holding above this key level, signs of a potential reversal are emerging. If the price fails to break through resistance levels and shows weakness, a downside correction could be imminent. Traders should be cautious and monitor for further bearish signals before considering short positions, Kedia said.

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