Gold Prices Rise in Response to Positive Global Cues and Rate Cuts
Gold prices in the domestic futures market increased on Monday, bolstered by positive global trends following a recent 50 basis points rate cut by the US Federal Reserve. Expectations of further rate cuts through 2026 are supporting gold’s appeal, as lower interest rates reduce yields on interest-bearing assets, making gold a more attractive option for investors.
Spot gold prices remain near record highs in international markets, driven by bullish trader sentiment as the US rate reduction cycle begins. Following the Fed’s announcement of potential rate cuts in the coming months, traders are anticipating further reductions, with a 51% chance of a 50-basis-point cut in November.
As of 9:05 AM, MCX Gold for October delivery traded 0.31% higher at ₹74,266 per 10 grams. Experts predict volatility in gold prices influenced by dollar movements and geopolitical developments.
Manoj Kumar Jain of Prithvifinmart Commodity Research noted key support and resistance levels for gold and silver, suggesting waiting for corrective dips to initiate fresh long positions. Rahul Kalantri from Mehta Equities echoed that both gold and silver are in a long-term bull run, with significant support and resistance levels outlined for future trading.
Brokerage firm SMC Global Securities forecasted gold trading between ₹73,800 and ₹74,200 and silver between ₹89,700 and ₹90,500, with a sideways to bullish outlook.
