Gold Price Outlook On Friday, September 27: What Will Drive 24K, 22K, 18K Prices Today?

Gold prices in India are above a new peak of more than the Rs 77,000 mark and in the international market, spot gold is chasing $2,700 levels. On Friday, gold prices will be influenced by Fed chair Jerome Powell's speech and Core PCE Price Index data. MCX support is placed at Rs 74,800 and its next key resistance is seen at Rs 76,000.

Gold Price In India: 24K gold price in India is at Rs 77,010, while 22K and 18K gold prices are at Rs 70,590 and Rs 57,760 per 10 grams. The cheapest gold is Rs 5,776 in 1 gram of 18K, while the most expensive gold to buy is Rs 7,70,100 in 24K/100 grams.

Silver Prices In India: Currently, 1 kg silver price is at Rs 95,100, followed by 100 grams and 10 grams at Rs 9,510 and Rs 951 respectively. The cheapest silver is at Rs 95.10.

MCX Gold, Silver Prices: MCX gold futures with October expiry is currently at Rs 75,408, while the December expiry price is at Rs 76,278 per 10 grams. Further, MCX silver futures with December expiry is at Rs 92,265 per 1 kg.

Spot Gold Prices: As per Trading Economics, gold held near $2,660 per ounce on Thursday, trading at record levels, as markets continued to assess the scale of expected rate cuts from the Federal Reserve in the ongoing easing cycle. Several Fed officials this week called for a cautious approach to policy adjustments following the aggressive 50 bps cut earlier this month. Nevertheless, markets anticipate a higher probability of a rate cut in November, with fed fund futures indicating about a 62% chance of another 50 bps reduction.

Also, the data revealed that markets are now looking forward to a series of US macro data for further guidance, including the PCE report, final Q2 GDP figures, weekly initial jobless claims, and durable goods orders. Investors are also closely monitoring additional speeches from other FOMC members, including Fed Chair Jerome Powell's address later in the day. In the meantime, the increasing violence and risk of a broader conflict in the Middle East continued to bolster gold's status as a safe haven.

Fed Governor Lisa D. Cook on September 26 said, "The return to balance in the labor market between supply and demand, as well as the ongoing return toward our inflation target, reflects the normalization of the economy after the dislocations of the pandemic. This normalization, particularly of inflation, is quite welcome, as a balance between supply and demand is essential for sustaining a prolonged period of labor-market strength."

While governor Adriana D. Kugler added, "inflation has broadly moderated as the supply of goods and services has improved, and as producers and consumers have adjusted to the effects of higher prices. Demand has moderated, in part due to tighter monetary policy. And, as I just noted, changes in the pace of wage growth have also played an important role in the ups and downs of inflation, which points me toward a discussion of labor markets, which has recently become a greater focus of monetary policy."

Kugler also said, "The progress in bringing down inflation thus far, coupled with the softening in the labor market that I have described, means that while our focus should remain on continuing to bring inflation to 2 percent, we should now also shift attention to the maximum-employment side of the FOMC's dual mandate. The labor market remains resilient, but the FOMC now needs to balance its focus so we can continue making progress on disinflation while avoiding unnecessary pain and weakness in the economy as disinflation continues in the right trajectory. I strongly supported last week's decision and, if progress on inflation continues as I expect, I will support additional cuts in the federal funds rate going forward."

Gold Price Outlook On Friday, September 27:

Kaynat Chainwala, AVP-Commodity Research, Kotak Securities said, COMEX gold reached a new peak of $2,694.90 per ounce, driven by expectations of further interest rate cuts by the Fed and rising geopolitical tensions. The CME FedWatch Tool currently indicates a 60.5% chance of a 50 basis point cut in November. Recent US economic data has presented mixed signals, with consumer confidence declining the most in three years and manufacturing PMI slipping further into contraction, while services activity remains robust.

Chainwala added, "The escalating conflict between Israel and Hezbollah has also enhanced gold's appeal as a safe haven. Today, COMEX gold remains steady near its record highs as traders await a pre-recorded address from Fed Chair Jerome Powell, scheduled to air later today at the 10th annual US Treasury Market Conference. Additionally, final GDP figures and jobless claims will be closely watched for insights into the Fed's potential easing trajectory."

Meanwhile, Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities said, "The upward trend remains strong as long as the $2600 support level in Comex is held. In the MCX, support is placed at ₹74,800 in the short term, with resistance around ₹76,000 as the next key level."