Gold price has traded higher in the early Friday session, supported by mounting expectations that the US Federal Reserve may deliver a 25-basis-point rate cut in September. However, the advance was restricted as the US dollar strengthened, making the metal relatively more expensive for overseas buyers.
Investors closely monitor Gold Price Today to assess safe-haven demand. On the Multi Commodity Exchange (MCX), the October gold futures were up 0.10% at Rs 1,02,199 per 10 grams. In contrast, September silver futures slipped 0.10% to Rs 1,17,062 per kg, reflecting mixed sentiment across precious metals.
Investor attention remains on the Fed's upcoming September policy meeting. Fed Chair Jerome Powell suggested the possibility of rate cuts in his speech on August 22 at the Jackson Hole Symposium. Powell's remarks were later reinforced by Fed Governor Christopher Waller, who expressed his support for a reduction next month.
A Fed Rate Cut could drive higher interest in precious metals. As per the CME FedWatch Tool, traders currently assign an 86% chance of a 25-bps cut in September. Lower interest rates make gold and other non-yielding assets more attractive by reducing the opportunity costs of holding them.
The global Gold Price often reacts strongly to inflation and policy changes. Adding to safe-haven appeal, ongoing geopolitical tensions and tariff-related uncertainty under the Trump administration have pushed up gold prices by nearly 3% in August so far.
Despite the supportive Fed outlook, the US dollar index remains a significant headwind. The greenback gained 0.20% on August 28 after second-quarter GDP data came in stronger than expected at 3.3% versus expectations of 3.1%. Additionally, weekly jobless claims fell to 229,000.
A stronger Dollar Index typically weighs on the performance of gold and silver. Although the dollar has declined about 2% this month following a sharp 3% rise in July, the recent rebound has capped gold’s upside momentum.
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The Silver Price has also seen sharp movements alongside gold volatility. Analysts are closely monitoring support and resistance zones for both gold and silver.
Manoj Kumar Jain of Prithvifinmart Commodity Research highlighted gold’s support at $3,454-$3,434 and resistance at $3,488-$3,510 per ounce. On MCX, gold has immediate support at Rs 1,01,750-Rs 1,01,400 and resistance at Rs 1,02,550-Rs 1,02,800. Silver, meanwhile, holds support at Rs 1,16,500-Rs 1,15,800 with resistance at Rs 1,18,000-Rs 1,18,850.
Rahul Kalantri of Mehta Equities sees international gold support at $3,385-$3,365 and resistance at $3,430-$3,450. In rupee terms, gold support is pegged at Rs 1,01,740-Rs 1,01,540, with resistance near Rs 1,02,450-Rs 1,02,650. Meanwhile, silver is expected to trade between Rs 1,16,150-Rs 1,15,350 as support and Rs 1,17,750-Rs 1,18,250 as resistance.
Overall, gold remains supported by expectations of Fed policy easing and safe-haven buying amid global uncertainties. However, the dollar’s renewed strength is likely to keep gains limited. Analysts suggest a buy-on-dips strategy for silver, while gold may remain range-bound for now.