Gold prices commenced the day with modest increases on the Multi Commodity Exchange on Thursday, as the metal persists in trading close to significant resistance levels that analysts are monitoring for a potential breakout. On the MCX, gold futures for December 5 delivery were trading at Rs 1,20,853 per 10 grams, reflecting an increase of Rs 240 or 0.2%. In the past fortnight, gold has exhibited trading activity within a range of Rs 1,22,325 and Rs 1,17,628. On Thursday, gold concluded the day on a weaker note in the domestic market and exhibited a slightly weaker performance in the international markets. The December futures contract for gold concluded at Rs 1,20,613 per 10 grams, reflecting a modest increase of 0.08%. Gold exhibited significant volatility, initially rising in the early trading session before retreating from its peak due to profit-taking activities. The metal encounters significant resistance at elevated levels while simultaneously maintaining its crucial support thresholds.
The dollar index has retreated from its three-month peaks, and the ambiguity regarding the conclusion of the U.S. shutdown may bolster safe-haven demand for gold. Today, the U.S. Dollar Index was hovering near the 99.78 mark, gaining 0.05 or 0.05%. Geo-political tensions are contributing to the support of precious metal prices. Gold is maintaining its critical threshold of $3,870 per troy ounce on a closing basis, according to Manoj Kumar Jain. “We anticipate that gold prices will exhibit volatility in today’s session, influenced by fluctuations in the dollar index, instability in global financial markets, and the uncertainty related to the conclusion of the U.S. shutdown.”
Gold is anticipated to fluctuate between $3,922 and $4,054 per troy ounce in the current session,” Jain added. The recent upward movement in prices is largely supported by safe-haven inflows amid macroeconomic uncertainty and persistent global political risks. Market participants are closely watching U.S. economic developments and potential government reopening discussions, which could further impact gold’s short-term trajectory. Analysts note that a sustained move above the $4,054 resistance could trigger renewed bullish momentum, while any pullback below $3,870 would likely attract renewed buying interest from long-term investors.
Rahul Kalantri observed that gold commenced the session positively but subsequently declined from intraday highs as traders engaged in profit-taking. Despite the prevailing selling pressure, gold continues to exhibit strong support at lower levels. “Technically, gold’s key make-or-break level stands at $3,855,” he added. The overall sentiment remains cautiously optimistic as gold consolidates near resistance, supported by safe-haven demand, a weaker dollar, and geopolitical instability. Traders are expected to maintain a range-bound outlook until clearer cues emerge from the U.S. economy and global risk environment.