Gold prices commenced with a notable increase on Friday, as the MCX February futures rose to Rs 1,28,313 per 10 grams, reflecting a gain of Rs 646 or 0.51% from the prior close. The yellow metal is currently positioned close to its two-week highs, supported by ongoing optimism regarding potential U.S. Federal Reserve rate cuts and a weaker dollar. Additionally, silver futures for March experienced an increase, climbing by Rs 1,639 or nearly 1% to Rs 1,67,626 per kg, suggesting bullish sentiments in the wider precious metals market. On Thursday, gold and silver concluded with a varied performance in both domestic and international markets. The February futures contract for gold concluded at Rs 1,27,667 per 10 grams, reflecting a decline of 0.08%. In contrast, the March futures contract for silver ended at Rs 1,65,987 per kilogram, marking an increase of 0.63%. Gold and silver exhibited stable trading patterns, concluding with a mixed performance in international markets, influenced by the closure of U.S. markets in observance of Thanksgiving Day.
Optimism surrounding a U.S.-led peace deal between Russia and Ukraine is constraining the upward movement of precious metals. However, expectations of Federal Reserve rate cuts and profit-taking in the dollar index are providing support for prices. Today, the US Dollar Index was hovering near the 99.62 mark, gaining 0.05, or 0.05%. “Three more cuts are expected before the end of 2026, and markets currently price in an 85% chance of a 25-bps cut in December, a significant increase from approximately 30% a week ago,” stated Prithviraj Kothari. The yields on U.S. 10-year bonds have declined to levels not seen in a month, which has concurrently bolstered the prices of precious metals.
“Despite market volatilities, gold is expected to hold its make-or-break level of $3,910 per troy ounce and silver could also hold its key support level of $48.40 per troy ounce in the international markets,” stated Manoj Kumar Jain. “We expect gold and silver prices to remain volatile in today’s session amid fluctuations in the dollar index, instability in the global financial markets, and in anticipation of key European economic data.
Gold is projected to trade within the range of $4,134-4,240 per troy ounce, while silver is anticipated to trade between $52.00-54.20 per troy ounce during today’s session,” he added. Meanwhile, Kothari believes that “Prices would need a solid trigger for prices to climb above $4200.” If it does, the next resistance would be 4245 (~Rs 127,800). If it doesn’t, then prices can decline to $4100 (~Rs 123,000).