Gold price today: The rates of gold and silver dropped on the MCX on Friday morning (October 10) on profit booking at higher levels amid easing geopolitical tensions and demand fatigue at record high levels.
Precious metals are witnessing some profit booking following a ceasefire deal between Israel and Hamas.
As Mint reported, Israel’s government early Friday morning formally approved the first phase of a US-brokered ceasefire and hostage release plan, paving the way for a suspension of hostilities in Gaza within the next 24 hours.
However, a decline in the US dollar limited losses for the yellow metal.
At 10 am, MCX Gold December futures traded 0.08 per cent down at ₹1,20,401 per 10 grams, while the MCX Silver December futures were down 0.56 per cent at ₹1,45,500 per kg at that time.
The dollar index declined by more than 0.20 per cent during the session, making gold cheaper in overseas currencies.
Gold is priced in US dollars, so weakness in the US currency makes gold more affordable in other currencies, thereby increasing its demand.
MCX Gold hit its record high of ₹1,23,677 per 10 grams, while MCX silver also rose to a fresh high of ₹1,53,388 per kg in the previous session.
Gold prices have been on a strong bull run of late amid economic and political uncertainties in the US and expectations of a US Fed rate cut. According to Reuters, the CME FedWatch Tool suggests that traders are currently pricing in a 25-basis-point cut in October and another in December, with a 95 per cent and 82 per cent chance, respectively.
US gold futures were on track to post gains for the eighth consecutive week, primarily due to hopes for a US Fed rate cut, as well as political chaos in Japan and France, and the ongoing US government shutdown.
“Gold prices continued to slip as easing tensions in the Middle East prompted investors to book profits in safe-haven assets like gold. Despite the recent dip, gold is still on track for its eighth consecutive weekly gain,” said Darshan Desai, CEO of Aspect Bullion & Refinery.
“In the short term, the combination of easing geopolitical risks and a stronger US dollar may continue to put pressure on gold prices. However, any pullback is likely to attract buyers at lower levels, as several uncertainties, such as the continuing risk of a US government shutdown, concerns over the Federal Reserve’s independence, and ongoing recession fears, still linger,” Desai said.
Experts highlight key levels to watch
Manoj Kumar Jain of Prithvifinmart Commodity Research said gold has support at $3,944 and $3,910, while resistance is at $4,040 and $4,080 per troy ounce. Silver has support at $46.40 and $45.50, while resistance is at $48 and $48.80 per troy ounce in today’s session.
On the MCX, gold has support at ₹1,19,100 and ₹1,17,700 and resistance is at ₹1,21,650 and ₹1,23,100, while silver has support at ₹1,44,400 and ₹1,41,000 and resistance is at ₹1,48,800 and ₹1,51,500, said Jain.
“We suggest traders must stay away from gold and silver in today’s session amid very high price volatility, but long-term investors could stay invested and also add in a SIP mode in the price decline, as there is no change in the long-term fundamentals of gold and silver,” said Jain.
Rahul Kalantri, VP of commodities at Mehta Equities, stated that gold has support at $3,940 and $3,910, while resistance is located at $4,020 and $4,045. Silver has support at $48.70 and $48.20, while resistance is at $50.20 and $50.80.
In INR, gold has support at ₹1,19,870 and ₹1,19,280, while resistance is at ₹1,21,850 and ₹1,22,400. Silver has support at ₹1,45,450 and ₹1,44,650 while resistance is at ₹1,47,550 and ₹1,48,450, said Kalantri.