Gold-Silver Prices: Gold and silver prices fell on MCX on Thursday, September 11, in the morning. Investors booked profits ahead of the US Consumer Price Index (CPI) data, while weak spot demand and dollar strength also weighed on the market. As of 9:05 am, MCX Gold October futures fell 0.28% to ₹ 1,08,681 per 10 grams. MCX Silver December futures were down 0.14% to ₹ 1,25,000 per kg.
However, despite the decline in the market, expectations of an interest rate cut by the US Federal Reserve in the coming week have supported gold prices. In early September, gold had touched a record high, crossing the level of ₹ 1,09,840 per 10 grams. But due to reduced demand in the spot market and lack of new triggers, the price has fallen by about ₹ 1,000 in two days.
All eyes on Fed’s rate cut
Experts believe that the Fed may cut rates by 25 basis points on September 17. The basis for this is the recent employment data, which showed that the US economy created 9,11,000 fewer jobs than expected in the last 12 months till March. This makes it clear that pressure is increasing on the job market.
Apart from this, the US CPI data coming today can also determine the direction of the market. According to a Reuters report, after a 0.2% increase in July, it is expected to go up to 0.3% in August. On a year-on-year basis, a 2.9% increase is expected in August compared to July’s 2.7% increase. These figures can affect the Fed’s monetary policy and bring about a change in investors’ strategy.
With what strategy should one invest in gold and silver?
Experts believe that there will be fluctuations in gold and silver in the coming days. Manoj Kumar Jain of Prithvi Finmart Commodity Research says that changes in the dollar index, global tensions, and inflation data will affect the prices. He suggests that investors can book profits by taking long positions in gold and invest cautiously in silver. According to Jain, gold can trade between $ 3,510 and $ 3,770 per troy ounce, and silver between $ 39.10 and $ 44.00.
Mehta Equities Vice President Rahul Kalantri also gave information about support and resistance levels. According to him, gold can face support between $ 3,615 and $ 3,590 and resistance between $ 3,660 and $ 3,675. Silver will find support at $ 40.90 to $ 40.70, while resistance will be seen at $ 41.40 to $ 41.65. In the Indian market, gold will face support at ₹1,08,340 to ₹1,07,740 and resistance at ₹1,09,450 to ₹1,09,950. Silver will face support at ₹1,23,550 to ₹1,22,750 and resistance at ₹1,25,950 to ₹1,26,740.
Right time for investors?
Experts believe that this is the time for strategic investment. In the coming days, US policy and global economic pressures will affect the prices of gold and silver. In such a situation, it will be beneficial for investors to book profits and set new targets, invest with a stop loss, and understand the direction of the market based on data.
The biggest lesson for investors at this time is not to invest without thinking in excitement. Fluctuations in the market are normal, but only wise decisions taken at the right time can bring profits.