Gold price today: Rates rise as US dollar, bond yields ease; experts share strategy for MCX Gold

Gold price today: Gold rates rose in the domestic futures market Thursday morning after the US dollar and treasury yields slightly eased from multi-month highs on the prospects of less aggressive US Fed rate cuts.

Benchmark 10-year US treasury yields declined about 38 bps to 4.22 per cent after hitting a three-month high in the previous session. The US dollar was trading flat near a three-month high.

MCX Gold for December 5 expiry traded 0.20 per cent up at ₹77,965 per 10 grams, while MCX Silver traded 0.49 per cent higher at ₹97,439 per kg around 9:15 am.

In international markets, gold prices rose on safe-haven demand, but gains were limited by the strengthening dollar. Spot gold prices hit a record high of $2,758.37 on Wednesday, supported by uncertainty surrounding the US election 2024 and Middle East tensions.

In the previous session, gold and silver on MCX hit fresh record highs but met with strong profit bookings. MCX Gold (December 5 contracts), after hitting a record high of ₹78,919 per 10 grams, closed 1 per cent lower at ₹77,868. Similarly, MCX Silver for the same expiry rose to its all-time high of ₹1,00,081 per kg but ended the day at ₹97,052, down 2.92 per cent.

“Gold and Silver prices inched lower in yesterday’s session amidst profit booking after hitting an all-time high mark on the domestic front. Today, in the early morning trade, both metals are trading steadily as market uncertainty regarding the US presidential election and persistent tensions in the Middle East continue to spur safe-haven demand,” Manav Modi, Senior Analyst-Commodity Research at Motilal Oswal Financial Services, observed.

Geopolitical tensions, US election-related jitters and expectations of further US Fed rate cuts support gold prices.

With less than two weeks remaining until the November 5 presidential election, the race between Vice President Kamala Harris and former President Donald Trump is tightening.

On the geopolitical front, according to a Reuters report, “Israeli strikes pounded Beirut’s southern suburbs, and Hezbollah said it fired precision-guided missiles for the first time at Israeli targets.”

Hopes for a Fed rate cut persist, but recent strong macroeconomic indicators suggest the US economy remains resilient, potentially discouraging the Fed from pursuing aggressive monetary easing.

According to Reuters, “the US economic activity remained steady from September to early October, with a slight rise in hiring.”

“Recent signs of resilience in the US economy spurred increased bets that the Fed will cut rates by 25 basis points in November, smaller than the 50 bps cut seen in September. Traders were also seen pricing in a higher terminal rate.The focus today will be on preliminary manufacturing and PMI services from major economies,” said Modi.

Experts’ strategy for MCX Gold

According to Rahul Kalantri, VP of commodities at Mehta Equities, gold has support at $2,710-$2,688, with resistance at $2,740-$2,755. Silver has support at $33.40-$33 and resistance at $33.98-$34.25.

In India, gold has support at ₹77,550- ₹77,340, with resistance at ₹78,060- ₹78,240. Silver has support at ₹96,240- ₹95,550, while resistance stands at ₹97,980- ₹98,750, said Kalantri.

Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold and silver prices to remain volatile this week, given the volatility in the dollar index and geopolitical tensions.

“Gold has support at $2,704-2,688, while resistance at $2,744-2,762 per troy ounce and silver has support at $33.40-32.88, while resistance is at $34.30-34.80 per troy ounce in today’s session. On the MCX, gold has support at ₹77,480-77,200 and resistance at ₹78,140-78,500 while silver has support at ₹96,100-95,200 and resistance at ₹97,750-98,800,” said Jain.

He suggests booking profits in gold and silver at higher levels and waiting for some corrective dips to initiate fresh long positions.

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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.