Gold Price Update, Gold Market Trends, Gold Price Projection: MCX gold prices experienced a dip on Thursday, while silver rates saw a decline of 1.14%. On the Multi Commodity Exchange, gold futures for October were trading at Rs 58,478 per 10 grams, reflecting a decrease of Rs 115, or 0.20%. Meanwhile, silver futures for December were down by Rs 814, settling at Rs 70,605 per kg on the MCX.
“COMEX Gold prices continued their downward trajectory for the second consecutive day, following the release of US inflation data that surpassed expectations. This development has intensified speculations regarding an imminent Federal Reserve rate hike. Today, market observers are closely monitoring US Retail Sales, PPI data, and the ECB policy meeting. Retail sales figures could provide valuable insights into consumer spending trends, which have remained resilient lately,” noted Ravindra Rao, CMT, EPAT, VP – Head Commodity Research at Kotak Securities.
Traders Keep an Eye on US PPI, Retail Sales, and Weekly Jobless Claims
Discussing the global factors that might influence the gold market, Manav Modi, Analyst- Commodity and Currency at Motilal Oswal Financial Services, remarked, “Following the inflation data, expectations for a pause in the September Fed meeting have surged to 97%, with a 60% likelihood in November. Fed officials are looking for clear evidence of declining inflation and a slowing economy. While some signs have emerged in recent sessions, they may not be sufficient to dismiss the potential need for further rate hikes later this year.”
“Today, the European Central Bank is deciding whether to raise its key interest rate to a record high or take a pause as the economic situation deteriorates. Additionally, the focus will be on the upcoming US PPI, retail sales, and weekly jobless claims data,” Manav Modi added.
Potential for Gold to Rally Towards Rs 59,500
Gold prices have seen a correction in today’s trading session. Commenting on the price movement, Chintan Mehta, CEO of Abans Holdings, stated, “Participation in the gold market has increased despite the recent price decline. However, overall participation remains relatively low, creating the conditions for a gold rally once participation levels rise. We view gold as an attractive investment opportunity at its current price levels. Currently, we are looking at support levels in the range of Rs 58,100 – 58,200. Nevertheless, a breach of this support level could expose gold to further declines. On the positive side, gold may experience a rally towards Rs 59,500 levels.”