Gold price today: Gold rates hit a record high of ₹1,06,199 per 10 grams, rising by about half a per cent, in the domestic futures market on Wednesday (September 3) morning on a stable dollar amid expectations of a US Fed rate cut this month.
MCX Gold October futures traded 0.28 per cent higher at ₹1,06,090 per 10 grams around 11. However, MCX Silver December futures were flat at ₹1,24,529 per kg at that time.
Gold prices have been rising due to persistent concerns over Trump’s tariffs and growing expectations that the US Federal Reserve will cut interest rates this month. International gold prices, too, hit record highs, with U.S. gold futures rising to $3,616.70 per troy ounce.
The US Fed will announce policy decision on September 17. According to Reuters, CME Group’s FedWatch tool indicates market is pricing in a 92 per cent chance of a 25-basis-point Fed rate cut this month.
The US non-farm payrolls data, due on Friday, is in focus as it may influence expectations about the size of the Fed’s potential rate cut this month.
Apart from Fed rate cut hopes, Trump’s tariffs are a major support for gold prices.
At first glance, it appears that the US tariff on Indian goods may not end anytime soon. According to a Bloomberg report, US President Donald Trump said on Tuesday that he is not looking at lowering tariffs on India.
Market participants fear that a prolonged period of higher US tariffs could significantly hurt the Indian economy. Gold prices, meanwhile, tend to rise in times of economic uncertainty.
“During recent sessions, dominating world economic uncertainties have significantly impacted Indian precious-metal markets, with gold maintaining its bullish run on the back of continued safe-haven demand,” Aksha Kamboj, Vice President of India Bullion and Jewellers Association (IBJA), and Executive Chairperson of Aspect Global Ventures, observed.
Amid heightened uncertainty over the direction of global economic growth, investors are aggressively buying gold.
Holdings of SPDR Gold Trust, which is the world’s largest gold-backed exchange-traded fund, rose 1.32 per cent to 990.56 tons on Tuesday, the highest since August 2022, reported Reuters.
Experts highlight key levels for gold, silver
Manoj Kumar Jain of Prithvifinmart Commodity Research said gold has support at $3,570-3,552, while resistance is at $3,620-3,640 per troy ounce, and silver has support at $41.20-40.84, while resistance is at $41.94-42.40 per troy ounce in today’s session.
On the MCX, Jain finds support for gold at ₹1,05,150-1,04,600 and resistance at ₹1,06,350-1,07,000, while silver has support at ₹1,23,500-1,22,200 and resistance at ₹1,25,200-1,26,600.
“We suggest booking profits in gold and silver in the long positions as the market is in a highly overbought zone,” said Jain.
Rahul Kalantri, VP of commodities at Mehta Equities, said gold has support at $3,505-3,475 and resistance at $3,550-3,568. Silver has support at $40.50-40.20 and resistance at $41.20-41.45.
In INR, Kalantri said gold has support at ₹1,05,240-1,04,840 while resistance is at ₹1,06,450-1,06,950. Silver has support at ₹1,22,050-1,21,250 while resistance at ₹1,23,750, 1,24,550.