Gold Price Outlook In India On Thursday, October 3, 2024: What Will Influence 24K, 22K, 18K Prices?

Gold prices surged sharply in the retail stores of India on the previous day, ahead of the onset of the Navratri festival season. However, since the commodity market was closed for trading on October 2nd due to Gandhi Jayanti, the prices of MCX gold and silver will react to the latest uprise in the tensions between Israel-Iran-Hezbollah on October 3rd. The Middle East war continues to escalate, while the latest stronger-than-expected US job data will further play a key role in influencing the yellow metal. Also, the festive season will keep the demand up.

Gold Price In India: 24K/100 grams gold price is at Rs 77,460 per 10 grams, while 22K and 18K gold price is at Rs 71,010 and Rs 58,100 per 10 grams. The yellow metal at retail stores is at a new record high.

Spot Gold, US Gold Futures: Gold inched lower on Wednesday, hitting a pause after rallying more than 1% in the previous session, as traders hunkered down for more U.S. economic cues and developments on the Middle East conflict. Spot gold was down 0.5% to $2,649.41 per ounce. While U.S. gold futures settled 0.8% lower at $2,669.7.

The limited ground invasion of Israel in Lebanon continues, alongside sweeping of Hamas terrorists in Gaza. At the same time, the Jewish country has promised to retaliate against Iran's latest barrage of some 200 missiles on their soil.

Further, the latest ADP National Employment report showed that U.S. private payrolls surged by 143,000 in September 2024, higher than market expectations.

Bob Haberkorn, senior market strategist at RJO Futures told Reuters that gold is seeing a bit of a sell-off on a stronger U.S. dollar, but "there's too much ahead of us, too many unknowns right now in the next 24 hours to be selling gold. He believes that it would be reasonable to see gold go north of the $2,700 mark if Israel strikes Iran.

MCX Gold, Silver Prices: On October 1, MCX gold futures with December 2024 expiry ended in red to Rs 76,344 per 10 grams, while MCX silver futures price is at Rs 91,390.

Gold Price Outlook On October 3, 2024:

According to Kaynat Chainwala, AVP-Commodity Research, Kotak Securities, gold prices witnessed declines, following remarks from Fed Chair Jerome Powell, who tempered expectations for aggressive interest rate cuts at the 66th NABE Annual Meeting.

He added, that Powell stated that the central bank would lower interest rates "over time," while emphasizing that the overall US economy remains on solid footing and reiterating his confidence that inflation will continue moving toward the Fed's 2% target. These comments led to a recalibration of market expectations regarding upcoming rate cuts and pushed the dollar higher.

Meanwhile, Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities said, the overall trend remains bullish, with support placed at ₹75,000 and resistance at ₹76,250-₹76,400 in MCX. Any significant deviation in the data could impact gold's short-term movement.

Also, gold demand will be high due to Navratri festival. Thursday, October 3, is deemed to be auspicious due to the Ghat Sthapana muhurat or Kalash Sthapana, which marks the onset of the Navratri.