Gold price today: Gold and silver rates climbed in the morning session of trade in the domestic futures market on Tuesday, August 26, amid dollar weakness after US President Donald Trump fired Federal Reserve Governor Lisa Cook over allegations of mortgage borrowing misconduct.
MCX Gold October 3 contracts were 0.27 per cent up at ₹100897 per 10 grams around 9:10 AM. MCX Silver September 5 contracts were 0.31 per cent up at ₹1,16,314 per kg at that time.
The dollar index dropped over 0.30 per cent as Trump removed Lisa Cook from the Fed’s Board of Governors. Some experts believe Cook’s replacement may be a Trump aide with a dovish disposition, who could push for more rate cuts.
Cook, the first African-American woman to serve as a Federal Reserve governor, was accused by William Pulte, the US Federal Housing Finance Agency Director appointed by Trump, of falsely claiming two mortgages as her primary residences. The Department of Justice stated that it is investigating the issue.
Meanwhile, US Federal Reserve Chair Jerome Powell, in his Jackson Hole symposium speech on Friday, August 22, hinted at a potential interest rate cut in September.
According to Reuters, the CME FedWatch Tool indicates markets now expect an 83 per cent chance of a 25 bps rate cut at the Fed’s September 17 policy meeting.
Fed rate cuts are positive triggers for gold prices.
Investors now await the US Q2 GDP preliminary prints on Thursday and personal consumption prices (PCE) data on Friday that will influence expectations about the Fed’s interest rate trajectory in the near term. India’s Q1 GDP prints are also due on Friday.
“Gold prices reached their highest level in two weeks amid heightened political uncertainty after President Donald Trump fired Federal Reserve Governor Lisa Cook. Meanwhile, Fed Chair Jerome Powell last Friday signalled a possible rate cut in September, highlighting growing risks to the labour market but also noting inflation remained a threat and that no decision has been finalised,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities.
Experts highlight key MCX levels to watch
“MCX Gold price for October futures may appreciate to ₹1,01,500 per 10 grams,” said Trivedi.
According to Manoj Kumar Jain of Prithvifinmart Commodity Research, gold has support at $3,404-3,389, while resistance is at $3,440-3,454 per troy ounce, and silver has support at $38.44-38.20, while resistance is at $39.00-39.35 per troy ounce in today’s session.
MCX Gold has support at ₹1,00,300-99,950 and resistance at ₹1,00,850-1,01,200, while silver has support at ₹1,15,115-1,14,400 and resistance at ₹1,16,650-1,18,000, said Jain.
Jain suggests buying gold around ₹1,00,400 with a stop loss of ₹1,00,040 for the target of ₹1,01,100 and silver around ₹1,15,500 with a stop loss of ₹1,14,400 for the target of ₹1,16,850-1,17,700.
According to Rahul Kalantri, VP of commodities at Mehta Equities, gold has support at $3,352-3,335 and resistance at $3,395-3,410. Silver has support at $38.45-38.25 and resistance at $39.05-39.25.
Kalantri said in INR, gold has support at ₹1,00,240-99,850 while resistance is at ₹1,00,950-1,01,150. Silver has support at ₹1,15,150-1,14,350 while resistance at ₹1,16,750, 1,17,250.