Gold price today: Rates of gold and silver hit fresh record highs in morning trade on Wednesday (October 1) as concerns over the US shutdown drove demand for safe havens. MCX Gold December futures contract hit a fresh high of ₹1,17,800 per 10 grams while MCX Silver December contract scaled a fresh peak of ₹1,44,844 per kg. Around 9:15 am, MCX Gold December contracts were 0.37 per cent up at ₹1,17,698 per 10 grams, and MCX Silver December contracts were 1.04 per cent up at ₹1,43,620 per kg.
The dollar’s weakness and expectations of further interest rate cuts by the US Federal Reserve, following weak labour data, also supported gold prices.
The dollar index traded near a one-week low, making gold cheaper in overseas currencies and thereby enhancing its demand.
The US is heading for a shutdown after the Senate failed to pass legislation extending government funding on Tuesday.
“Gold rose as concerns over a looming US government shutdown boosted demand for safe-haven assets. Traders are closely monitoring its possible duration, as an extended closure could delay key economic data, including Friday’s nonfarm payrolls report, which is crucial ahead of the Fed’s late-October policy meeting,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities.
The focus is also on the RBI MPC policy decision today. The market is expecting a status quo on the repo rate.
Is it the right time to buy gold?
Gold’s long-term outlook remains positive. However, the yellow metal is expected to remain volatile in the near term.
“We expect gold and silver prices to remain volatile this week amid volatility in the dollar index, volatility in the global financial markets and ahead of the US non-farm employment data,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.
Jain suggests waiting for some corrective dips to initiate a fresh long position in gold and silver, and avoiding any kind of short selling.
According to Jain, gold has support at $3,844-$3,820, while resistance is at $3,900-$3,920 per troy ounce, and silver has support at $46.20-$45.85, while resistance is at $47.00-$47.40 per troy ounce in today’s session.
MCX Gold has support at ₹1,16,550- ₹1,15,700 and resistance at ₹1,18,000- ₹1,18,800, while MCX Silver has support at ₹1,41,000- ₹1,39,800 and resistance at ₹1,43,500- ₹1,44,800.
According to Trivedi, the MCX Gold December contract is likely to advance to ₹1,18,000 per 10 grams, as the trend is bullish in the international market as well.
Rahul Kalantri, VP of commodities at Mehta Equities, stated that gold has support at $3,830-$ 3,810, while resistance is at $3,884-$3,910. Silver has support at $46.60-$ 46.30, while resistance is at $47.40-$47.70.
In INR, gold has support at ₹1,15,800-1,15,180 while resistance is at ₹1,16,950-1,17,300. Silver has support at ₹1,41,450-1,40,850 and resistance is at ₹1,43,550 and ₹1,44,300, said Kalantri.
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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.