Gold trades up on US Fed rate cut hopes, but dollar's rise caps gains; experts highlight key MCX levels to watch
Gold price today: Gold rates rose in the domestic futures market on Friday (August 29) morning, supported by expectations of a 25 bps Fed rate cut in September. However, the dollar’s rise against its peers capped the gains for the yellow metal. MCX Gold October 3 contracts were 0.10 per cent up at ₹1,02,199 per 10 grams around 9:15 AM. MCX Silver September 5 contracts, however, were down 0.10 per cent at ₹1,17,062 per kg at that time.
Domestic gold prices have risen about 3 per cent in August amid Trump’s tariff-related uncertainties and expectations of Fed rate cuts.
US Fed Chair Jerome Powell signalled in his Jackson Hole speech on August 22 that the central bank may cut rates in its next policy meeting in September.
According to Reuters, “Fed Governor Christopher Waller on Thursday said he would support an interest-rate cut next month and further reductions over the next three to six months.”
According to the CME FedWatch Tool, the market is discounting an 86 per cent chance of a 25-basis-point rate cut in September.
However, the volatility of the dollar index remains a key drag on gold prices. Since the yellow metal is priced in the greenback, a stronger US currency makes gold expensive in other currencies, limiting its demand.
The dollar index rose 0.20 per cent on August 28 after the US Q2 GDP data came in better than expected. This month, it has declined nearly 2 per cent after rising 3 per cent in July.
Experts highlight key levels for MCX Gold
Manoj Kumar Jain of Prithvifinmart Commodity Research pointed out that the US trade tariff uncertainty and geopolitical tensions are supporting safe-haven buying for precious metals.
On the other hand, the US GDP data released on Thursday was better than expected and came up at 3.3 per cent against the expected reading of 3.1 per cent, and jobless claims also dropped to 2,29,000, but the market digested the upbeat US data, said Jain.
Jain finds support for gold at $3,454-3,434, while resistance is at $3,488-3,510 per troy ounce. Silver has support at $38.80-38.50, while resistance is at $39.55-39.80 per troy ounce in today’s session.
Jain said MCX Gold has support at ₹1,01,750-1,01,400 and resistance at ₹1,02,550-1,02,800, while silver has support at ₹1,16,500-1,15,800 and resistance at ₹1,18,000-1,18,850.
He suggests buying silver on dips around ₹1,16,500-1,16,000, with a stop loss of ₹1,15,100 and a target of ₹1,18,000-1,18,800.
According to Rahul Kalantri, VP Commodities, Mehta Equities, gold has support at $3,385-3,365 and resistance at $3,430-3,450. Silver has support at $38.65-38.45 and resistance at $39.15-39.35.
In INR, gold has support at ₹1,01,740-1,01,540 while resistance is at ₹1,02,450-1,02,650. Silver has support at ₹1,16,150-1,15,350 while resistance at ₹1,17,750, 1,18,250.
Read all market-related news here
Read more stories by Nishant Kumar
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.