Gold Price Outlook On Wednesday, October 9, 2024: Key Factors To Influence 24K, 22K, 18K Prices

Gold prices in India will likely be influenced by upcoming RBI policy outcomes, FOMC minutes of the meeting, and US CPI inflation data on Wednesday, October 9, 2024. Gold prices in the international market performed steady, amidst subdued US dollar index. On Wednesday, key support for MCX gold prices could be between Rs 75,400 to Rs 75,550.

Gold Prices In India: At present, 24K of 10 grams gold is available at Rs 77,440, while 22K and 18K of 10 grams gold is priced at Rs 70,990 and Rs 58,080. Yellow metal at retail stores are also driven by the latest Navratri festival, and demand is likely to continue in the upcoming Diwali season as well which will start at the end of October month. Gold is near its all-time high levels.

MCX Gold, Silver Prices: Gold futures at MCX, with December expiry, ended at Rs 75,150 per 10 grams, down marginally on October 8. While MCX silver futures is available at Rs 88,710 per 1kG.

Gold Price Outlook On Wednesday:

Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities said, the market remains focused on key upcoming data, particularly the Fed's meeting minutes and US CPI data, which will guide the next move for gold.

Trivedi added tensions in the Middle East between Iran and Israel are also keeping gold volatile, with a projected range between ₹75,450-₹76,350 in MCX.

Furthermore, he said, market sentiment on rate cuts remains neutral, with expectations of a 0.25% cut as the US unemployment numbers came in line, dulling hopes for a larger rate cut.

"While the overall trend for gold remains strong, some minor profit booking could emerge. Immediate support is seen near ₹75,400-₹75,550, with resistance around ₹76,400-₹76,550," the analyst said.

US Gold Price, Spot Gold Price: As per a Reuters report, gold prices held steady on Wednesday as traders awaited cues on U.S. interest rate policy from the minutes of the Federal Reserve's latest meeting. Spot gold held its ground at $2,622.24 per ounce by 0020 GMT, after falling more than 1% in the previous session. U.S. gold futures edged 0.2% higher to $2,641.00.

On Wednesday, FOMC minutes of the September 2024 meeting will be announced. While US CPI inflation is scheduled for Thursday, followed by the Producer Price Index (PPI) report on Friday.

Meanwhile, also on October 9, six-member MPC led by RBI governor Shaktikanta Das will present the bi-monthly monetary policy for FY25. RBI is likely to keep the repo rate unchanged at 6.5%, as per a poll of 36 economists conducted by GoodReturns.In.

As per the poll that was conducted between September 21st to October 5th, six out of 36 economists believe the chances of RBI softening its hawkish 'withdrawal for accommodation' stance is high to 'Neutral'. Meanwhile, the first rate cut is broadly seen in December policy, followed by February of FY25.

According to the CME FedWatch tool, market participants predict an 87% probability of a 25 bps rate cut in the upcoming policy of the Fed which is in November.