Gold rate right this moment: Gold October futures contracts at MCX reached a brand new all-time excessive of Rs 76,000 per 10 grams on Wednesday. Over the previous week, gold costs have risen by Rs 2,900 per 10 grams, following the US Fed’s determination to chop charges by 50 bps.
In distinction, silver December futures contracts had been buying and selling at Rs 92,221/kg, a lower of 0.19% or Rs 172. However, silver has additionally seen important positive factors over the previous week, rising by Rs 3,900/kg.
According to an ET report, Anuj Gupta of HDFC securities attributed the record-high gold costs to “persistent optimism over U.S.interest rate cuts” and the Chinese authorities’s announcement of “a barrage of stimulus measures, raising hopes of an economic recovery.”
“Another fresh reason is that the Chinese government announced a barrage of stimulus measures, raising hopes of an economic recovery,” mentioned Anuj Gupta of HDFC securities.
The Federal Reserve’s substantial rate lower of fifty bps final week, together with considerations about additional weakening within the labor market and a revised dot plot, elevated the chance of extra cuts, offering extra upside potential for gold.
Manav Modi, Senior Analyst, Commodity Research at Motilal Oswal, famous that “preliminary manufacturing PMI numbers were reported lower than estimates in major economies. US consumer confidence data was also reported lower at 97 v/s expectations of 103.9 supporting the rally in bullion.”
Several Fed officers expressed assist for the financial institution’s current 50 bps lower however anticipated a slower tempo of cuts within the coming months. With Governor Powell and greater than 9 different Fed officers scheduled to talk this week, any change in tone from the current Fed assembly might result in worth volatility, in accordance with Modi.
The US Dollar Index (DXY) was buying and selling close to 100.28, experiencing a decline of 10.19 or 0.19% right this moment.
Tensions within the Middle East have escalated between Hezbollah and Israel. Hezbollah confirmed that Israel had focused and killed Ibrahim Qobeissi, one in all its prime commanders, in an air strike that shook the southern suburbs of Beirut.
According to Modi, additional escalation and updates on the state of affairs might probably improve the secure haven enchantment of gold and silver costs.
“The daily chart of MCX Gold October futures reveals a robust uptrend, with prices moving above an ascending trendline and consistently forming higher highs and higher lows. A bullish engulfing candlestick pattern has emerged, signaling continued bullish momentum. The price is also trading above the 21-day Exponential Moving Average (EMA), highlighting the ongoing upward trend. Additionally, the RSI shows positive divergence, reinforcing the bullish outlook. Key resistance levels are located at 75,500 and 75,700, while important support zones are marked at 74,730 and 74,440,” mentioned Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies.
Neha Qureshi suggests the next intraday buying and selling technique:
* Buy MCX October gold futures at Rs 75,000 with a cease lack of Rs 74,700 and a worth goal of Rs 75,500
* Buy MCX December silver futures at Rs 92,400 with a cease lack of Rs 91,000 and a worth goal of Rs 95,000
