Gold price today: Rates slip ahead of US inflation data; what should be your strategy for bullion today?

livemint.com:

global market as investors await US inflation data, expected later today, which could influence expectations around the interest rate trajectory in the US. "While the Fed is expected to leave interest rates unchanged at its September 19-20 policy meeting, the US central bank will probably wait until the April-June period of 2024 or later before cutting it," Reuters reported quoting a poll of economists. MCX Gold for October 5 contract traded 0.09 per cent lower at ₹58576 per 10 grams around 10:25 am.

As there are strong expectations that the Fed will not hike rates from here on, market participants appear bullish on gold for the long term. When interest rates go up, holding gold becomes less attractive because it doesn't generate significant income, and this makes people less interested in owning it. In case of rate cuts, gold becomes attractive for investing.

Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold and silver to remain volatile in today’s session ahead of the US inflation data and ECB (European Central Bank) monetary policy meetings. He expects gold to hold $1,922 per troy ounce level while silver could hold $22.50 per troy ounce levels this week on a closing basis. "Gold has support at $1,922-1,910, while resistance at $1,944-1,956 per troy ounce.

Silver has support at $23.15-22.88, while resistance is at $23.64-23.92 per troy ounce. On the MCX, gold has support at ₹58,500-58,380 and resistance is at ₹58,750-58,920 while silver has support at ₹71,550-71,100 and resistance is at ₹72,330-72,750," said Jain. Jain suggests staying away from gold and silver in today's session ahead of the US inflation data.