Gold price today: The price of gold dropped in the domestic futures market early Monday, following weak global cues and subdued demand from the spot market. International gold prices also slid as the US dollar strengthened, nearing its two-month high.
MCX Gold was trading 0.14% lower at ₹76,201 per 10 grams around 9:20 am.
The rise in the dollar is detrimental to gold prices due to the inverse relationship between the two. As gold is priced in dollars on the international market, a stronger US currency makes gold more expensive in other currencies, dampening demand for the precious metal.
Last week, gold saw gains driven by weaker-than-expected US economic data, speculations of Federal Reserve rate cuts, and geopolitical uncertainties. This week, gold is expected to exhibit volatility amidst updates on Fed rate decisions and dollar movements.
According to Reuters, there is an 89% probability of the Fed implementing a 25-basis point rate cut at its November meeting, with an 11% chance of rates remaining unchanged.
Insight into Experts’ Analysis:
Manoj Kumar Jain from Prithvifinmart Commodity Research suggests that gold has support levels at $2,658-2,644 and resistance levels at $2,688-2,704 per troy ounce. Meanwhile, silver is expected to find support at $31.40-31.15 and resistance at $32-32.40 per troy ounce for the current session.
In the MCX, Jain suggests that gold may find support at ₹76,040-75,800 with resistance at ₹76,630-76,950. For silver, the support levels are ₹91,000-90,220 and resistance at ₹92,400-93,300.
Jain recommends buying gold on dips around ₹76,040 with a stop loss at ₹75,770 aiming for a target of ₹76,800. Similarly, he suggests buying silver above ₹91,200 with a stop loss at ₹90,350 and a target of ₹93,200.
Rahul Kalantri, VP of commodities at Mehta Equities, anticipates gold to have support between $2,624 and $2,605, with resistance around $2,661-2,678. Silver’s support is seen between $30.72 and $30.50, and the resistance lies at $31.15-31.34.
In terms of Indian rupee, Kalantri highlights that gold has support at ₹75,980-75,810 with resistance at ₹76,460-76,670. For silver, support levels are ₹91,050-91,450, and resistance ranges from ₹92,290 to ₹92,680.
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Disclaimer:The views and recommendations expressed are from individual analysts, experts, and brokerage firms, not Mint. It is advisable for investors to seek guidance from certified experts before making any investment decisions.
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### Market Insights
Gold prices took a hit recently due to the strengthening US dollar and subdued demand in the spot market. This trend underscores the impact of global cues on the gold market and the intricate relationship between the dollar and gold prices.
### Fed Rate Speculations
The likelihood of a Federal Reserve rate cut is a key factor influencing gold prices. Investors are closely watching for updates on potential rate cuts, as they can significantly impact the direction of gold prices in the short term.
### Technical Analysis
Expert analysis from Manoj Kumar Jain and Rahul Kalantri provides valuable insights into key support and resistance levels for both gold and silver. This technical analysis aids traders in making informed decisions based on price movements and market trends.
### Investment Recommendations
With support and resistance levels identified, investors can consider strategic buying and selling opportunities in the gold and silver markets. Recommendations from experts like Jain and Kalantri serve as valuable guidance for investors looking to navigate the volatility in precious metal prices.
