Gold price today: Gold rates climbed in the domestic futures market Wednesday morning, supported by weakness in the US dollar after inflation prints showed a slower-than-expected rise, fuelling hopes of a US Fed rate cut in September. MCX Gold October 3 contracts were up 0.06 per cent at ₹1,00,215 per 10 grams at 9:15 AM. MCX Silver September 5 contracts were up 0.49 per cent at ₹1,14,290 per kg at that time.
US Consumer Price Index (CPI) increased by 2.7 per cent year-on-year in July, holding steady from June’s rate. In June, too, US inflation had risen by 2.7 per cent, but it was its highest level since February.
However, July inflation data showed that the underlying price pressures, or core inflation, accelerated as the effects of President Donald Trump’s tariffs on imports began to influence the economy.
“US inflation data eased concerns over tariff-driven inflation, reinforcing expectations for a 25-bps Fed rate cut in September and boosting the appeal of non-yielding bullion. Attention now turns to upcoming releases, including PPI, weekly jobless claims, and retail sales,” Jigar Trivedi, Senior Research Analyst at Reliance Securities, observed.
Meanwhile, India’s retail inflation fell to its slowest pace in eight years, slipping below the lower end of the Reserve Bank of India’s 2-4 per cent target range. The consumer price index (CPI) rose just 1.55 per cent annually in July, in the weakest increase since June 2017.
The moderation in US inflation has fuelled hopes of a Fed rate cut next month. According to Reuters, markets are pricing in about a 90 per cent chance of a rate cut in September. At least one additional rate cut is also expected by the end of the year.
Rate reduction is positive for non-yielding gold.
The dollar’s weakness also helped gold prices move higher on Wednesday. During the session, the dollar index declined by 0.10 per cent to 98.
However, easing geopolitical concerns limited the gains for the yellow metal.
US President Donald Trump and Russian President Vladimir Putin will meet in Alaska on Friday, August 15, to discuss an end to the Russia-Ukraine war.
Clear signals about the end of the Ukraine war will be a major boost to investors’ risk appetites, which can weigh on safe-haven gold.
Experts highlight key MCX levels
Trivedi expects the MCX gold price for October futures to trade in a range from ₹99,800 to ₹1,00,400 per 10 grams in today’s session, staying rangebound.
Rahul Kalantri, VP of commodities at Mehta Equities, said gold has support at $3,338-3,320 while resistance is at $3,370-3,385. Silver has support at $37.75-37.45 while resistance is at $38.27-38.50.
In INR, Kalantri said gold has support at ₹99,810-99,450 while resistance is at ₹1,00,750-1,00,980. Silver has support at ₹1,13,080-1,12,450 while resistance at ₹1,14,400-1,15,100.
According to Manoj Kumar Jain of Prithvifinmart Commodity Research, gold has support at $3,384-3,360, while resistance is at $3,414-3,440 per troy ounce, and silver has support at $37.70-37.40, while resistance is at $38.35-38.55 per troy ounce in today’s session.
MCX Gold has support at ₹99,850-99,475 and resistance at ₹1,01,440-1,01,750, while silver has support at ₹1,13,000-1,12,200 and resistance at ₹1,14,400-1,15,115.
“We suggest buying silver on dips around ₹1,13,000-1,12,500 range with a stop loss of ₹1,11,400 for the target of ₹1,14,400-1,15,100,” said Jain.
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
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