Gold prices rally by Rs 3,000/10 gm in September month. What’s ahead?

Amid a volatile trend, Gold October futures on MCX have surged by Rs 3,000 so far in September, trading at Rs 1,06,856 per 10 grams on Friday. The rally has been supported by hopes of a Fed rate cut as well as ongoing geopolitical tensions.

Meanwhile, silver December futures on MCX were trading higher by Rs 745, or 0.6%, at Rs 1,24,665 per kg today.

On Thursday, gold and silver settled lower in both domestic and international markets. Gold October futures settled at Rs 1,06,417 per 10 grams, down 0.73%, while silver December futures settled at Rs 1,23,920 per kg, down 1.55%.

“Gold and silver witnessed profit-taking from record highs ahead of the U.S. jobs report. Traders secured their profits in both precious metals before the non-farm payroll data,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.

The dollar index is trading steady above the 98 mark, but global uncertainty due to U.S. trade tariffs and strong buying by global central banks continue to support precious metal prices. Fed rate cut expectations are also underpinning gold and silver.

Today, the U.S. Dollar Index (DXY) was hovering near 98.13, up 0.17 points, or 0.18%.

“Gold prices could hold support at $3,454 per troy ounce, while silver prices may hold at $39.10 per troy ounce. Any major downside surprise in U.S. job data could trigger fresh upside for both metals,” Jain added.

How to trade gold?

Jain suggested the following MCX trading ranges:

• Gold has support at Rs 1,05,850–1,05,400 and resistance at Rs 1,07,000–1,07,720.
  
• Silver has support at Rs 1,23,000–1,22,200 and resistance at Rs 1,25,000–1,26,300.
  

He recommends buying gold on dips around Rs 1,05,800 with a stop loss at Rs 1,05,380 for a target of Rs 1,07,000. Similarly, he suggests buying silver near Rs 1,23,500 with a stop loss at Rs 1,22,800 for a target of Rs 1,25,000.

Gold rates in physical markets

Gold Price today in Delhi

Standard gold (22 carat) prices in Delhi stand at Rs 58,280/8 grams while pure gold (24 carat) prices stand at Rs 62,184/8 grams.

Gold Price today in Mumbai

Standard gold (22 carat) prices in Mumbai stand at Rs 57,928/8 grams while pure gold (24 carat) prices stand at Rs 61,712/8 grams.

Gold Price today in Chennai

Standard gold (22 carat) prices in Chennai stand at Rs 56,696/8 grams while pure gold (24 carat) prices stand at Rs 60,832/8 grams.

Gold Price today in Hyderabad

Standard gold (22 carat) prices in Hyderabad stand at Rs 57,008/8 grams while pure gold (24 carat) prices stand at Rs 56,968/8 grams.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)