Gold price today: Rates rise after Fitch Ratings downgrades US credit rating; what should investors do?

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Fitch Ratings downgrade: Could a cut in US rating mean higher inflows to India, other EMs? MCX Gold for October delivery traded 0.26 per cent higher at ₹59,544 per 10 grams around 10:10 am. Gold prices may trade with gains today, taking support from the dollar's weakness after the Fitch downgrade. Ravindra V.

Rao, CMT, EPAT, VP-Head Commodity Research at Kotak Securities believes gold prices might stay buoyed for the day as Fitch Ratings’ move to strip the US of its top-tier sovereign credit grade might keep demand for safe havens buoyed. Brokerage firm Motilal Oswal Financial Services believes gold, on MCX, could trade in the range of ₹58,800–59,700. "MCX Gold is likely to trade within a range for the session.

Support is placed at ₹59,380-59,200 and resistance is at ₹59,720-59,880," said the brokerage firm. Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold and silver prices to remain volatile this week ahead of the US job data. "Gold could hold its support level of $1,974 per troy ounce while silver could also hold its support level of $24.20 per troy ounce in the international markets.

Gold has support at $1,974-1,958, while resistance at $1,988-2,000 per troy ounce. Silver has support at $24.20-23.84, while resistance is at $24.55-24.84 per troy ounce," said Jain. "On MCX, gold is having support at ₹59,200-58,950 and resistance at ₹59,550-59,770 while silver is having support at ₹73,550-73,100 and resistance at ₹74,400-74,850.

We suggest buying gold for around ₹59,300 with a stop loss of ₹59,080 for the target of 59700," said Jain. Deveya Gaglani, a research analyst for commodities at Axis Securities pointed out that gold prices snapped their winning streak in the last session. On the daily chart,