Gold price today: Rates rise ahead of June CPI data; what should be your strategy for MCX Gold today?

Gold price today: Gold prices were up in morning trade in the domestic futures market on Wednesday, July 10, mirroring trends in the international markets as investors awaited key US inflation data to gauge the trajectory of the US interest rate.

Hopes that the US Federal Reserve will start reducing interest rates in September this year, after Fed Chair Jerome Powell said inflation was easing, supported gold prices.

In his testimony to the Senate on Tuesday, Powell highlighted inflation as moderating but reiterated that the central bank sought more data to be confident about the declining inflation trajectory.

Powell underscored the risks of elevated interest rates for a longer period in his testimony. The Fed Chair will speak before the Congress on Wednesday.

Meanwhile, the US consumer price index (CPI) data for June is due on Thursday. Experts expect it to show a marginal rise of 0.1 per cent month-on-month and 3.1 per cent year-on-year. The Fed wants inflation to be below 2 per cent.

MCX Gold for August 5 delivery traded 0.33 per cent higher at ₹72,636 per 10 grams around 12:30 pm.

Gold has seen decent gains this year due to expectations of rate cuts, geopolitical uncertainty, and the strong buying of yellow metal by major global central banks.

"Fed Chair is watchful of economic data points as he accepted that keeping rates too high could jeopardise economic growth. Updates regarding geopolitical tensions in the Middle East also support the risk premium in the market," said brokerage firm Motilal Oswal.

What should be your strategy for MCX Gold today?

Gold prices are expected to remain steady on Wednesday ahead of Powell's testimony before Congress and US inflation data on Thursday.

Motilal Oswal expects gold to trade in a range of ₹72,200-73,000, with support at ₹72,300-72,100 and resistance at ₹72,750-72,925.

According to Saish Sawant Dessai, an analyst of base metals at Angel One, gold prices may remain steady as investors await US inflation data for clues on future interest rate changes.

"Support for gold is placed at ₹72,970 - 72,610, while resistance is seen at ₹72,650 - 72,940 levels," said Sawant.

MCX Gold August is expected to hold the key support of the 10-day EMA (exponential moving average) at ₹72,100 and move towards ₹72,800. Above ₹72,800, it would open the doors for ₹73,200, according to ICICI Direct.

“Focus now shifts to the US inflation report, which would give more clarity on the timing of the first interest rate cut in the US. Any sign of moderation in the inflation number would increase the chances of a September rate cut. Further, a rise in holdings by physically backed gold ETFs would also support the bullion in holding its ground firm,” ICICI Direct said in a note.

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Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.