Gold rate today, silver rate today (September 26): Gold prices in the commodity markets are trading around the world with small gains after hitting new record highs. Similarly, mimicking global price movements, October gold futures on MCX traded weak at Rs 75,249 per 10gm. Similarly, December silver futures traded marginally lower at Rs 92,138, down by Rs 93 per kg.
The price of gold remained firm above $2,650 for the second straight time as traders raised the possibility of another major interest rate cut by the Federal Reserve (Fed) at the upcoming November meeting. That amid higher US Treasury yields kept Gold from rising further, where it was trading mostly near $2,660 and oz levels overnight. Market sentiment turned sour during the US session as Wall Street traded in the red. Therefore, Bullion prices reached a record high of $2,670 but declined as US Treasury yields rose four and a half basis points (bps) to 3.775%.
Meanwhile, the US Dollar Index fell to its lowest in 14 months and rose 0.54% to 100.88.
During the week, US economic data showed that business activity in the manufacturing sector cooled while services remained strong. However, the deterioration of Consumer Confidence by the Conference Board (CB) suggests that conditions in the labor market may be worse than expected. Last week, the Fed cut borrowing costs by 50 bps to 4.75% – 5.00%, and traders seem confident of back-to-back cuts of the same size. According to the CME FedWatch Tool, the probability of a 50 bps Fed cut is 60%, while 25 bps stands at 40%.
Outlook
Neha Qureshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies said bullion rates are up 29% so far in 2024, fueled by demand for Gold’s ETFs and major central banks starting their easing cycles.
This and the country’s volatility could keep traders placing their bets at $2,700 from a medium-term perspective.
Meanwhile, in the short term, traders are looking ahead to Fed Chairman Jerome Powell’s speech on Thursday for further clues on interest rates while the upcoming Core PCE Index data scheduled for tomorrow may remain important to determine whether gold can remain stuck at all-time highs. at the end of the week or not.
Gold/silver trading strategy
Qureshi has advised buying gold (October) on dips around Rs 75,300 with a target price of Rs 76,000, keeping Rs 74,900 as stop loss. Similarly, for MCX silver, the expert has advised buying on dips at around Rs 92,000 against a target of Rs 94,000, with a stop loss of Rs 91,000.