Gold prices have continued a volatile trend this week so far, and Wednesday is likely to be no different. However, gold prices would be influenced by upcoming US inflation data, which will further give clarity on the size of the rate cut by the Federal Reserve in the upcoming policy. MCX gold prices have support near Rs 71,500 per 10 grams, while resistance is seen around Rs 72,520 per 10 grams. A continued dip in dollar value and treasury yield will further offer support to bullion.
Gold Prices In India, September 11, 2024:
In the early hours of Wednesday, gold prices in retail stores in India dipped by Rs 1 to Rs 100. The 24K gold price in India is at Rs 72,830, while the 22K price is at Rs 66,760, and the 18K price is at Rs 54,620.
The cheapest gold is Rs 5,462 which is 1 gram of 18K, and the most expensive gold to buy is Rs 7,28,300 which is 100 grams of 24K.
In September 2024 so far, gold prices are marginally down.
Gold Prices In Major Cities:
24K/10 grams gold price is at Rs 72,830 in cities like Chennai, Mumbai, Kolkata, Pune, Hyderabad, Bangalore, and Kerala.
While the gold price in Delhi was the highest at Rs 72,980 compared to other cities, just Rs 20 away from hitting the Rs 73,000 mark, also, gold prices in Vadodara and Ahmedabad are at Rs 72,880 per 10 grams each.
Gold Prices In Major Countries:
Gold prices in Dubai are at AED303.75 or Rs 6,945 per 1 gram in 24K, while gold prices are at SGD112.80 or Rs 7,264 in Singapore. Gold prices in Western countries like England stood at GBP61.96 or Rs 6,806, and in Canada, the price was at CAD111.25 or Rs 6,880. Lastly, the gold price in Saudi Arabia is SAR309 or Rs 6,917.
MCX Gold Price:
In the previous session, MCX gold futures with October expiry are Rs 71,903 per 10 grams. The bullion is flirting near the Rs 72,000 mark.
International Gold Prices:
As per Reuters, gold prices held firm above the $2,500 level on Tuesday as market participants positioned themselves ahead of U.S. inflation data for further clues on the depth of interest rate cuts by the Federal Reserve next week. Spot gold XAU rose 0.3% to $2,512.38 per ounce, while U.S. gold futures GCcv1 settled 0.4% higher at $2,543.1.
Gold Price Outlook:
Pranav Mer, Vice President, EBG - Commodity & Currency Research, JM Financial Services said that gold prices have recovered from above support levels at 70850, partially supported by bargain buying, a weaker dollar and a fall in treasury yield amid rising expectation of a rate cut by the U.S. Fed, adding support have been a corrective move in global equities that is pushing investors towards safe-haven assets,
Mer added, "On charts... prices hold support at 71700/ 71500, while on the upside resistance holds at 72270/ 72520."
Meanwhile, Kaynat Chainwala, AVP-Commodity Research, Kotak Securities said, The underwhelming U.S. jobs report bolstered the case for Federal Reserve easing, though uncertainty about the scale of rate cuts limited gold's upside. According to the CME FedWatch Tool, the probability of a 25-bps Fed rate cut has increased to 71%, while the likelihood of a 50-bps cut stands at 29%. Gold remains steady around $2,530/oz as traders await the release of U.S. CPI figures, which are expected to show a 2.5% increase for August compared to the previous year. This would be the smallest gain since 2021 and would edge closer to the Fed's 2% target. Additionally, speeches by FOMC members Barr and Bowman will be closely watched.
US Inflation Outlook: As per Trading Economics, the annual inflation rate in the US likely slowed for a fifth consecutive month to 2.6% in August 2024, which would be the lowest rate since March 2021, from 2.9% in July. Compared to the previous month, the CPI is projected to increase by 0.2%, the same as in July. Meanwhile, core inflation is seen steady at an over three-year low of 3.2%. The monthly core inflation rate is also anticipated to remain at 0.2%.
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