Gold rate today: Gold weakens for third consecutive day after Fed cuts rates

Precious metals opened flat but drifted lower in the opening trade on Thursday after the US Fed cut policy rates by 25 basis points. Fed Chairman Jerome Powell, however, took a cautious approach to any further reductions in borrowing costs.

Gold futures (Oct) weakened for the third consecutive day in a row to trade below Rs 37,600 per 10 grams on MCX. Silver futures (Dec) were trading below Rs 46,200 per kg.

On Wednesday, gold ended about 0.5 per cent lower.


Crude oil has softened over the last couple of days, which indicates a slightly improved market sentiment. This has also made gold retreat.

In the international markets, spot gold was 0.3 per cent lower at $1,489.73 per ounce. Prices fell as much as 1 percent in the previous session before settling down 0.6 per cent. US gold futures were down 1.2 per cent at USD 1,497.5 per ounce, according to Reuters.



Spot gold is poised to break a support at $1,488 per ounce and fall to the next support at USD 1,446, according to Reuters analysts.

The support is provided by the 23.6 per cent retracement on the uptrend from USD 1,265.85 to USD 1,557. After a few days consolidation above this level, the metal briefly pierced below this support again. Chances are it may succeed in overcoming this barrier and falling more this time.