Today’s Gold Price Soars on MCX as Fed Chair Jerome Powell’s Remarks and Middle East Tensions Take Center Stage

Gold price today: Gold rates are on the rise in the domestic futures market Monday morning, as investors shift their focus to the comments from US Fed Chair Jerome Powell and geopolitical developments in the Middle East.

MCX Gold is trading 0.30 per cent higher at ₹75,945 per 10 grams around 9:45 am.

Recent times have seen healthy gains in gold prices in both domestic and international markets, primarily fueled by optimism about the US Fed rate cut and escalating tensions in the Middle East.

The US Fed initiated its rate reduction cycle by implementing a 50 bps cut in benchmark rates on September 12. There is a growing expectation that the central bank will further reduce rates by 75-100 bps throughout the year.

The recent increase in tensions following Israel’s attacks on Iranian-backed forces in the Middle East is also impacting gold prices. The conflict has intensified with Israel’s actions in the region, including the killing of Hezbollah leader Sayyed Hassan Nasrallah in Beirut.

As per a Reuters report, “Israel’s intensified attacks against Hezbollah in Lebanon and Houthi in Yemen have sparked concerns that the conflict in the Middle East could escalate and involve Iran and the United States.”

Geopolitical tensions, economic uncertainties, and rate cuts are serving as positive factors driving gold prices upward.

Rahul Kalantri, VP of commodities at Mehta Equities, mentioned, “Gold is edging closer to $2,700 per troy ounce, and silver has recently reached its highest level in 11 years. The strengthening of gold and silver can be attributed to interest rate cuts by central banks worldwide, stimulus initiatives from China, and escalating global tensions.”

The imminent catalyst for gold comes from the comments of Powell and Fed Governor Michelle Bowman, scheduled for later today, which could provide significant insight into the interest rate trajectory and inflation.

Experts’ strategy for MCX Gold, Silver today

According to Kalantri, gold has support levels at $2,651-2,640, with resistance at $2,684-2,699. For silver, support is at $31.42-31.24 and resistance at 31.87-32.05. In Indian Rupee terms, gold finds support at ₹74,750-74,570, while resistance is at ₹75,190-75,380. Silver’s support in INR is at ₹90,850-90,150, with resistance at ₹91,990-92,680.

Manoj Kumar Jain of Prithvifinmart Commodity Research anticipates that gold and silver prices will experience volatility this week due to fluctuations in the dollar index, geopolitical tensions, and the Fed Chairman’s speech.

Jain believes that, on a weekly closing basis, they are likely to maintain their support levels at $2,600 and $30.40 per troy ounce, respectively. Any corrections due to profit-taking in gold and silver might present a buying opportunity at lower levels.

“Gold is expected to find support at $2,664-2,650, with resistance at $2,696-2,720 per troy ounce. Silver’s support rests at $31.64-31.40 and resistance at $32.20-32.50 per troy ounce in today’s session. On the MCX, gold is supported at ₹75,440-75,200 and faces resistance at ₹76,000-76,330. Meanwhile, silver is expected to find support at ₹90,650-90,000 and resistance at ₹92,100-92,750,” noted Jain.

Jian recommends buying silver on dips around ₹90,800 with a stop loss at ₹90,150 and a target of ₹92,100.

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Disclaimer: The views and recommendations provided above are attributed to individual analysts, experts, and brokerage firms, and do not reflect those of Mint. It is advisable for investors to seek advice from certified experts before making any investment decisions.