Gold prices experienced an uptick on the MCX during early trading on Wednesday, December 10, in anticipation of the US Federal Reserve’s policy announcement. MCX gold February futures experienced an increase of 0.20%, reaching Rs 1,30,369 per 10 grams around 9:05 am. Concurrently, MCX silver March contracts rose by 1.14%, priced at Rs 1,90,210 per kg during the same period. The US Federal Reserve is poised to announce its policy decision today, December 10, in the context of a cooling labor market and persistent inflation that exceeds the Fed’s 2% target. The Personal Consumption Expenditures price index, which is the Federal Reserve’s favored gauge of inflation, experienced a 0.3% rise in September, aligning with the increase observed in August. On an annual basis, the index increased by 2.8%, marginally surpassing the 2.7% rise noted in August. Initial jobless claims in the US decreased to 191,000 for the week ending November 29 — marking the lowest level in over three years and significantly below the anticipated figure of 220,000.
Economics anticipates that the Federal Open Market Committee will lower the federal funds rate by 25 basis points, bringing it to a range of 3.50%–3.75% during its concluding meeting of the year on Wednesday. While expectations for interest rate reductions bolster gold, increasing bond yields persist in exerting downward pressure on prices. On Monday, the benchmark US 10-year Treasury yield reached its peak level in two and a half months. Manoj Kumar Jain notes that gold and silver experienced substantial gains in anticipation of the FOMC meeting results and the prevailing optimism regarding a rate cut. Silver prices have reached unprecedented levels, closing above $60 per troy ounce for the first time in international markets. “A price increase from $50 to $60 per troy ounce occurred within a mere 12 trading sessions. Shortages in physical delivery and robust performance in industrial metals are bolstering silver prices. Gold is also maintaining its position above the $4,200 threshold. The market anticipates a 25 basis point reduction in rates during the upcoming Fed meetings; however, Powell’s remarks regarding additional monetary easing may influence the trajectory of precious metals, gold and silver may maintain their crucial support levels of $3,960 per troy ounce and $54.40 per troy ounce, respectively, in the international markets,” according to Jain,
Rahul Kalantri indicated that gold has support in the range of $4175-4145 and faces resistance between $4270-4295. He noted, gold has support at Rs 1,29,450-1,28,750, while resistance is observed at Rs 1,30,950-1,31,700. Meanwhile, regarding the silver outlook, Kalantri indicated that silver has support at $60.70-59.85 while resistance is at $61.95-62.45. In the near term, the white metal exhibits support levels at Rs 1,86,750-1,85,200, with resistance identified at Rs 1,89,810 and Rs 1,90,670. Manoj Kumar Jain anticipates that gold and silver prices will experience volatility this week, influenced by fluctuations in the dollar index, instability in global financial markets, and the forthcoming outcomes of the Fed meeting. Gold is projected to trade within the range of $3,960-4,380 per troy ounce, while silver is expected to fluctuate between $54.40-62.80 per troy ounce during this period.
“Gold has support at 4200-4164, while resistance at 4258-4300 per troy ounce and silver has support at 59.80-59.10, while resistance is at 61.20-62.00 per troy ounce in today’s session. At mcx, gold exhibits support levels between 129500 and 128800, with resistance identified in the range of 130660 to 131200. In contrast, silver shows support at 186600 to 185000, while resistance is observed between 190000 and 192400. We recommend purchasing gold in the range of 129600-129200, with a stop loss set at 128800 and a target of 130600-131200. Additionally, we advise buying silver around 185500, with a stop loss positioned below 181000 and a target of 190000-194000,” Jain stated.