Gold price today: Rates inch up; can the yellow metal sustain gains? Experts unveil this strategy for MCX Gold

Gold prices increased in the domestic futures market on Wednesday morning, tracking positive global cues. Around 9:25 am, MCX Gold traded 0.11 per cent higher at ₹71,463 per 10 grams.

Gold prices recovered from the weakness seen in the previous session amid a sell-off in riskier equities after US manufacturing shrank at a moderate pace in August, raising concerns over the US economy losing steam. According to a Reuters report, "a further decline in new orders and rise in inventory suggested factory activity could remain subdued for a while."

In international markets, spot gold rose to $2,495 per ounce after hitting its lowest level in more than a week on Tuesday.

This has raised hopes for a deeper rate cut by the US Fed this month. The focus is now on the monthly US payrolls report later this week, which will give a clue about the pace and size of the Federal Reserve rate cuts this year.

Can gold rates sustain gains?

Gold prices tend to rise during economic uncertainty and interest rate cuts. However, experts believe the yellow metal will remain volatile in the near term, reacting to macro developments.

This week's US JOLTS job opening and employment data will shape market sentiment toward rate cuts, influencing gold prices. Geopolitical factors, too, will impact the gold price trajectory.

Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold and silver prices to remain volatile this week amid volatility in the dollar index and ahead of the US job data. However, he believes they could hold their key support level of $2,464 per troy ounce and $27.80 per troy ounce, respectively, on a weekly closing basis.

"Gold seems to be sleeping for the last week and will likely end its time correction soon. Before getting a fresh upward breakout, we may see a small dip to ₹70,700 - ₹70,411," said Aiyub Yacoobali, Chairman and Managing Director of South Gujarat Shares And Sharebrokers.

Experts unveil this strategy for MCX Gold

Jain said for today's session, international gold has support at $2,500-2,488 and resistance at $2,534-2,550 per troy ounce. On the other hand, silver has support at $28-27.80 and resistance at $28.60-28.88 per troy ounce.

On the MCX, Jain said gold has support at ₹71,200-70,950 and resistance at ₹71,600-71,820, while silver has support at ₹82,700-82,000 and resistance at ₹83,850-84,400. He suggests selling gold on the rise around ₹71,600 with a stop loss of ₹71,820 for the target of ₹71,100.

According to Yacoobali, on the downside, MCX Gold's major support is located at ₹71,272 – ₹71,127. For fresh upward momentum, gold has to cross ₹71,780 – ₹71,720.

According to Rahul Kalantri, VP of commodities at Mehta Equities, gold has support at $2,478-$2,461, with resistance at $2,512-$2,527. Silver has support at $27.65-$27.40 and resistance at $28.22-$28.45. In INR terms, gold has support at ₹71,150- ₹70,910 and resistance at ₹71,610- ₹71,820. Silver has support at ₹80,650- ₹80,150 and resistance at ₹81,980- ₹82,650.

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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.