Gold rate today: Yellow metal price flat ahead of US inflation data; experts reveal strategy for MCX Gold

Gold rate today: Gold prices traded flat with negative bias in early trade in the domestic futures market on Tuesday, September 10, mirroring lacklustre global sentiment. A rise in the US dollar and caution ahead of the US inflation data on Wednesday weighed on gold prices.

The dollar rose to its one-week high level, putting pressure on gold prices. The dollar's rise is negative for gold prices since the yellow metal is priced in dollars. When the dollar's value rises, gold becomes expensive in other currencies, eroding its safe-haven appeal.

The US Federal Reserve's upcoming policy meeting on September 17-18 is the biggest near-term trigger for gold. Experts point out that the market has discounted a 25 bps rate cut this time, and it may not boost gold prices. However, if the Fed decides to go for a bigger cut of about 50 bps, it will trigger gold prices.

Investors await the US Consumer Price Index (CPI) data on Wednesday and the Producer Price Index (PPI) prints on Thursday.

According to a Reuters poll, the US headline CPI is expected to have risen 0.2 per cent month-on-month in August, unchanged from July.

MCX Gold for October 4 delivery traded 0.07 per cent lower at ₹71,580 per 10 grams around 9:20 am.

Experts' strategy for MCX Gold today

Gold prices are expected to remain volatile ahead of the US inflation data. Experts also observe that the yellow metal may see a directional movement only after the US Fed policy decision next week.

Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold and silver prices to remain volatile this week amid volatility in the dollar index and the global financial markets ahead of the US inflation data. However, he expects the precious metals to hold their support levels of $2,464 and $26.80 per troy ounce on a weekly closing basis.

"Gold has support at $2,518-2,500, while resistance at $2,550-2,568 per troy ounce and silver has support at $28.34-28, while resistance is at $29-29.40 per troy ounce in today’s session," said Jain.

"On the MCX, gold has support at ₹71,350-71,100 and resistance at ₹71,850-72,080, while silver has support at ₹83,000-82,250 and resistance at ₹84,400-85,100," said Jain.

Jain suggests buying gold on dips around ₹71,350, with a stop loss of ₹71,080 and a target of ₹71,850.

According to brokerage firm SMC Global Securities, gold may trade in the range of ₹71,300-71,800, and silver may trade in the range of ₹83,100-83,900, with sideways to mixed bias.

Aiyub Yacoobali, Chairman and Managing Director of South Gujarat Shares And Sharebrokers and Yacoobali Venture Commodity Broking Private Limited, pointed out that with rising dollar index, MCX Gold is unable to cross resistance zone of ₹72,349. It registered high of ₹72,235 and witnessed profit booking.

"On the downside, ₹71,174 – 70,736 will act as a major support zone. Fresh supply is possible only below this zone. On the other hand, a fresh upward momentum is possible only if MCX Gold manages to trade above the ₹72,349 level. As of now, MCX Gold is trading in time correction. Violation of support and resistance zones will lead to fresh momentum," said Yacoobali.

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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.