Gold prices experienced profit-taking from elevated levels amid market volatility, even with increasing expectations of Federal Reserve rate cuts in December and a decline in the dollar index. Gold February futures prices at MCX commenced trading with a decline of Rs 523, reflecting a decrease of 0.41%, now positioned at Rs 1,27,248 per 10 grams. Silver March futures contracts reflected a comparable sentiment, commencing at Rs 1,64,349/kg, down by approximately Rs 600 or 0.36%. Gold and silver prices experienced a modest increase on Wednesday, driven by heightened expectations regarding possible rate cuts by the U.S. Federal Reserve during its December policy meetings, alongside profit-taking in the dollar index. Analysts observed that the precious metals received support from dovish remarks made by Federal Reserve officials, alongside a mixed array of U.S. economic indicators. On Wednesday, the Gold February futures contract on the MCX settled at Rs 1,27,748 per 10 grams, reflecting a decline of 0.02%. In contrast, the Silver March futures contract closed at Rs 1,64,951 per kilogram, marking an increase of 3.08%.
The increase in bullion prices coincides with a further decline in the dollar index and a decrease in U.S. 10-year bond yields, which have fallen below the 4% threshold, reaching a four-week low. Today, the US Dollar Index was hovering near the 99.48 mark, falling 0.11 or 0.11%. Meanwhile, U.S. jobless claims decreased to 216,000, marking the lowest level since February, a development that analysts suggest may constrain additional increases in precious metals.
In light of current market fluctuations, Manoj Kumar Jain of Prithvifinmart Commodity Research anticipates that gold will maintain its position above the critical technical support level of $3,910 per troy ounce, whereas silver is likely to remain above $47.70 per troy ounce in the global markets. Jain anticipates continued volatility in both metals, influenced by variations in the dollar index and global macroeconomic indicators, especially in advance of significant data releases from Europe.
Manoj Kumar Jain indicated that in the MCX markets, gold is experiencing support within the Rs 1,27,000–1,26,350 range and encountering resistance around Rs 1,28,200–1,29,100. Silver is currently experiencing support in the range of Rs 1,63,300 to Rs 1,62,000, while facing resistance within the Rs 1,67,700 to Rs 1,70,000 range. Jain recommends purchasing gold at approximately Rs 1,27,000, with a stop loss set beneath Rs 1,26,300, aiming for targets between Rs 1,28,200 and Rs 1,29,000. For silver, the recommendation is to acquire within the Rs 1,63,500–1,62,000 range, implementing a stop loss beneath Rs 1,60,600, with a target of Rs 1,67,700–1,70,000.