Gold Price Today, Silver Price Today (September 26): Gold prices in the international spot market traded marginally higher after hitting a fresh record high. Similarly, reflecting the global price fluctuations, October gold futures on MCX traded marginally lower at Rs 75,249 per 10 grams. Similarly, December silver futures traded marginally lower at Rs 92,138 per kg, down by Rs 93.
Gold prices stabilized above $2,650 for the second consecutive day as traders raised the possibility of another significant interest rate cut by the Federal Reserve at its November meeting. High U.S. Treasury yields prevented gold prices from rising further and traded near $2,660 per ounce overnight. Market sentiment worsened somewhat during the U.S. session as Wall Street traded in the red. Thus, gold prices hit a record high of $2,670 but fell as U.S. Treasury yields rose 4.5 basis points (bps) to 3.775%.
Meanwhile, the US Dollar Index rebounded from a 14-month low, rising 0.54% to 100.88.
U.S. economic data this week showed that manufacturing business activity cooled while services remained strong. However, a worsening Conference Board consumer confidence index suggests that labor market conditions may be worse than expected. Last week, the Fed cut borrowing costs by 50 basis points to 4.75%-5.00%, and traders seem confident of another round of rate cuts of that magnitude. According to the CME FedWatch tool, there is a 60% chance that the Fed will cut rates by 50 basis points and a 40% chance that it will cut rates by 25 basis points.
Outlook
Neha Qureshi, senior technical and derivatives analyst at Anand Rathi Commodities & Currencies, said demand for gold ETFs and the start of a monetary easing cycle by major central banks have boosted bullion prices by 29% so far in 2024.
This, along with geopolitical tensions, is likely to keep traders targeting $2,700 in the medium term.
Meanwhile, in the near term, traders are looking to Fed Chairman Jerome Powell’s speech on Thursday for further clues on interest rates, while core PCE index data due to be released tomorrow could also remain key in determining whether gold can maintain its record highs over the weekend.
Gold/Silver Trading Strategy
Qureshi recommends buying gold (October) at the lows around Rs 75,300 with a target price of Rs 76,000 and a stop loss of Rs 74,900. Similarly, for MCX silver, the expert has recommended buying at the lows. Around Rs 92,000, target Rs 94,000 and stop loss Rs 91,000.
