Gold Price Outlook On Tuesday, October 1, 2024: What Will Drive 24K, 22K, 18K Prices Today? Latest Gold Rates

Gold prices corrected in India after their consecutive record-high rallies. Silver prices witnessed a similar trend. On Tuesday, October 1, 2024, the momentum in gold prices will be swayed by the latest speech of Fed's chair Jerome Powell at the National Association for Business Economics conference, coupled with, US job data. Further, escalation between Israel and Hezbollah going ahead will be favourable for precious metals.

Gold Prices In India: 24K gold price in 10 grams is priced at Rs 77,240 currently, while the price is at Rs 70,800 for 22K, and Rs 57,930 for 18K gold. Gold is highest in Delhi at Rs 77,390 per 10 grams in 24K. The 1-gram gold price is Rs 5,799 in 18K, which is the cheapest amount for yellow metal. 1 gram of gold is at Rs 7,080 in 22K and at Rs 7,724 in 24K.

Silver Prices In India: The price of silver in India currently is at Rs 95 per gram and Rs 95,000 per kilogram. Further, 100 grams and 10 grams silver price is at Rs 9,500 and Rs 950 respectively.

MCX Gold, Silver Prices: MCX gold futures with December expiry is at Rs 75,617 per 10 grams, correcting from the intraday high of Rs 76,210 per 10 grams on September 30. While MCX silver futures with December expiry stood at Rs 90,641 per 1 Kg, after hitting an intraday high of Rs 92,156 per 1 kg on Monday.

Gold Price Outlook On Tuesday, October 1, 2024:

According to Kaynat Chainwala, AVP-Commodity Research, Kotak Securities, gold price retreated from record highs because even though softer inflation numbers bolstered expectations of rate cuts, but also sparked debate about their magnitude.

Further, he highlighted that the Fed's preferred inflation measure, the Personal Consumption Expenditures (PCE) index, rose by 0.1% month-on-month and 2.2% year-over-year in August. Last Thursday, gold had surged to a record high of $2,708.70 per ounce, driven by a significant drop in consumer confidence that heightened expectations for more aggressive rate cuts by the Fed. Geopolitical tensions, particularly the ongoing conflict between Israel and Hezbollah, further enhanced gold's appeal as a safe-haven asset.

As per the latest CME FedWatch tool shows that the odds of a larger rate cut increased to 53.3% after the PCE data release. However, on Monday, the US job market mildly dipped to 4.2% in August 2024, compared to July's print of 4.3%. Also, the average surge in payroll employment touched its lowest level since early 2021, to 116,000 in the last three months, as per the latest data.

Meanwhile, at the economic conference, Powell stated that the latest 50 bps rate cut should not be interpreted as a sign of further aggressive cuts in the upcoming policies. He said, "We are not on any preset course." He signalled that future rate cuts could be in smaller proportion.

Further, Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities said, there is growing anticipation of another 0.50% cut in the next meeting, but participants are cautious.

Trivedi added, that for MCX, support levels are seen at ₹75,000-₹75,250, while resistance is near ₹76,150-₹76,350.

Additionally, Pranav Mer, Vice President, EBG - Commodity & Currency Research, JM Financial Services said, "The bullion is likely to remain supported by safe-haven demand, buying among ETF investors, etc."

On charts, Mer said, "trend remains positive till support at 75850/ 75500 holds, while on the upside resistance is seen at 76550 (for Dec. futures)"