New Delhi [India], September 10 (ANI): Gold prices touched fresh highs on Wednesday, holding above the one lakh mark despite a marginal fall in the domestic market. At the time of filing, gold rates stood at Rs 1,09,440 for 10 grams of 24 karat gold, according to India Bullion rates.
In the morning session, gold futures on the Multi-Commodity Exchange (MCX) traded lower on profit booking at higher levels, even as global cues remained supportive.
Multi-Commodity Exchange (MCX) is a platform that facilitates online trading of derivative contracts for a wide range of commodities, including precious metals.
Data from the India Bullion and Jewellers Association (IBJA) showed gold easing by Rs 66 to Rs 1,09,409 per 10 grams on Wednesday, compared to Rs 1,09,475 in the previous session. Silver too edged lower by Rs 626 to Rs 1,24,144 per kg, after closing earlier at Rs 1,24,770.
Experts said the rally in gold has been supported by weak economic signals from the United States, which have strengthened expectations of rate cuts by the Federal Reserve.
Jateen Trivedi, VP Research Analyst, Commodity and Currency at LKP Securities, said, “Gold traded positive with gains of 0.50 per cent at USD 3654 on COMEX and 0.69 per cent at Rs 1,09,250 on MCX as prices factored in the highly expected Fed rate cut after weak jobs and payroll data. The rally has stretched into overbought zones, keeping profit booking a possibility, hence trailing stop-loss for longs is advised.” He added that upcoming US data, especially the Consumer Price Index report, could play a decisive role in market direction, with key support at Rs 1,08,000 and resistance near Rs 1,10,000 in India.
Kaynat Chainwala, AVP Commodity Research at Kotak Securities, noted that international prices had surged to historic highs earlier this week. “Spot gold surged to a record high of USD 3,646 per ounce on Monday, driven by soft U.S. labor market data that prompted traders to price in three Federal Reserve rate cuts this year, including a 25 bps cut at the upcoming September meeting,” she said.
Chainwala also pointed to continued gold buying by China’s central bank, which has added support to global prices. “Today, gold extended gains to fresh all-time highs ahead of the benchmark annual revision of U.S. jobs data, due later today,” she added. (ANI)
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