Gold price today: Rates slip; what should be your strategy for bullion today?

“Gold prices extended losses to hit their lowest level in a week on Wednesday as US Treasury yields and the dollar strengthened on expectations that interest rates are likely to remain high. The US dollar hovered near six-month highs hit on Tuesday, while 10-year bond yields were at over one-week highs as markets weighed cues on interest rates,” reported Reuters.

Experts pointed out that while gold had seen a strong run-up over the past two weeks, it struggled to make headway in recent sessions despite signs of cooling US economic activity. Expectations of interest rates remaining at higher levels for a longer-than-expected time have weighed on gold prices.

MCX Gold for October 5 delivery traded 0.06 per cent lower at ₹59210 per 10 grams around 10:10 am.

What should be your strategy for gold today?

While analysts remain positive for the gold for the long term, they expect the yellow metal to remain volatile in the near term.

Rahul Kalantri, VP – Commodities at Mehta Equities expects gold and silver to remain volatile this week amid volatility in the dollar index.

“Gold has support at $1,914-1,904 while resistance is at $1,938-1,948. Silver has support at $23.35-23.20, while resistance is at $23.72-23.88 In the Indian rupee terms, gold has support at ₹59,020, 58,840 while resistance is at ₹59,450, 59,610. Silver has support at ₹72,710-72,250, while resistance is at ₹73,940–74,450,” said Kalantri.

Manoj Kumar Jain Prithvifinmart Commodity Research expects gold and silver to remain volatile this week amid volatility in the dollar index.

Jain believes gold could test its support level of $1,934 per troy ounce once again.

“Gold has support at $1,945-1,934, while resistance at $1,966-1,978 per troy ounce. Silver has support at $23.66-23.40, while resistance is at $24.15-24.40 per troy ounce,” said Jain.

“On the MCX, gold has support at ₹59,100-58,950 and resistance is at ₹59,380-59,550. Silver has support at ₹73,000-72,650 and resistance at ₹73,850-74,200,” Jain said.

He suggests selling gold at around ₹59,400 with a stop loss of ₹59,565 for the target of ₹59,100.

Brokerage firm SMC Global Securities believes gold may trade in the range of ₹59,000-59,500. Silver can trade in the range of ₹71,700-72,700, with sideways to a bearish bias.

Brokerage firm ICICI Direct believes spot gold may slip to the $1,909 level as long as it sustains below the $1,935 level amid a strong dollar and surge in US treasury yields.

“MCX Gold prices are likely to move further south to ₹59,000 as long as it trades below the resistance level of ₹59,400. MCX Silver is expected to slip further to ₹72,800 as long as it sustains below ₹74,000,” said ICICI Direct.

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Disclaimer: The views and recommendations above are those of individual analysts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

Updated: 06 Sep 2023, 10:28 AM IST