Gold price today: MCX Gold October futures hit a fresh record high of ₹1,09,500 per 10 grams in early trade on Tuesday, September 9, supported by healthy spot demand, weaker dollar and expectations of US Fed rate cuts next week.
Gold’s October contracts on the MCX traded 0.40 per cent higher at ₹1,08,955 per 10 grams at 9:40 am, while MCX Silver December futures were 0.22 per cent up at ₹1,25,850 per kg at that time.
The dollar index declined about 0.10 per cent during the session, making gold cheaper in other currencies and enhancing its demand.
The biggest driver of gold prices this month has been the Fed rate cut expectations.
Apart from signals from Fed officials, the latest US macro data has strengthened the expectations of rate cuts this month.
US job growth weakened sharply in August, and the unemployment rate increased to a nearly four-year high of 4.3 per cent.
“Payrolls grew by 22,000 in August after an upwardly revised gain of 79,000 in July. June numbers were revised lower by 27,000. With these revisions, employment in June and July combined is 21,000 lower than previously reported. The labour market is coming to a standstill as businesses slow the pace of hiring and await clarity on tariffs and Fed policy,” Jeffrey Roach, Chief Economist for LPL Financial, observed.
The focus is on Thursday’s August US CPI inflation data for further clues on the Fed’s monetary policy trajectory.
Domestic spot gold prices have surged about 42 per cent this year so far, strongly outperforming the equity benchmark Nifty 50 which has gained just over 4 per cent in the same period.
On December 31 last year, spot gold traded near ₹76,000 per 10 grams. On September 8 this year, it was near ₹1,08,000 per 10 grams.
Heightened global uncertainties due to US tariffs and geopolitical tensions, the dollar’s weakness, strong buying by central banks, dovish monetary policies, and concerns over global economic growth have boosted gold prices this year.
Gold and silver: Key levels to watch
According to Rahul Kalantri, VP of commodities at Mehta Equities, gold has support at $3,625-3,595 and resistance at $3,668-3,684. Silver has support at $41.20-40.90 and resistance at $41.72-41.95.
In INR terms, Kalantri said gold has support at ₹1,08,040-1,07,640 and resistance at ₹1,08,950-1,09,450, while silver has support at ₹1,24,750-1,23,950 and resistance at ₹1,26,350-1,27,150.
Manoj Kumar Jain of Prithvifinmart Commodity Research said gold has support at $3,650-3,634, while resistance is at $3,692-3,710 per troy ounce, and silver has support at $41.64-41.30, while resistance is at $42.20-42.50 per troy ounce in today’s session.
MCX Gold has support at ₹1,08,000-1,07,440 and resistance at ₹1,09,100-1,09,650, while silver has support at ₹1,24,800-1,23,500 and resistance at ₹1,26,600-1,27,700, Jain said.
Jain suggests buying silver around ₹1,24,800 with a stop loss of ₹1,23,500 for the target of ₹1,26,600-1,27,500.
Darshan Desai, CEO – Aspect Bullion & Refinery, pointed out that the short-term sustainability of this rally will largely depend on the revised US jobs data due later today, as well as upcoming inflation figures later this week.
“Continued ETF inflows, strong central bank purchases, and growing concerns over potential political pressure on the Fed are also likely to keep gold prices elevated,” said Desai.