Gold price today: Rates drop on MCX on profit booking amid dollar's rise; RBI MPC in focus
MCX gold February contracts were 0.13% down at ₹1,30,288 per 10 grams, while MCX silver March contracts were 0.08% down at ₹1,82,200 per kg.
Gold price today: The rates of gold and silver dropped on the MCX in morning trade on Thursday, December 4, amid profit booking due to the dollar's rise against its peers and tepid spot market demand. MCX gold February contracts were 0.13% down at ₹1,30,288 per 10 grams, while MCX silver March contracts were 0.08% down at ₹1,82,200 per kg.
The dollar index reclaimed the level of 99 after slipping to 98.85 in the previous session. However, the gains of the greenback remained limited on increased US Fed rate-cut bets.
The focus of the domestic market is on the Reserve Bank of India (RBI) Monetary Policy Committee (MPC) policy decision on December 5. Experts are divided in their opinions about the potential policy decision; some expect a 25-basis-point rate cut, while others believe the central bank will maintain the status quo on rates for the third consecutive policy meeting.
A major trigger for gold would be a rate cut by the US Federal Reserve next week. The US Federal Open Market Committee (FOMC) will meet on December 9-10 to decide on the benchmark interest rates.
As Reuters reported, the CME's FedWatch tool shows an 89% chance that the Fed will announce rate cuts on December 10.
"The Fed is likely to cut the federal funds target by another quarter of a per cent at the December 10 decision. Conflicting views among FOMC members will likely prevent the Fed from clearly signalling additional cuts ahead," said Bill Adams, Chief Economist for Comerica Bank.
"But given the negative trend of recent employment data and downside risks to jobs from AI, tariffs, and shaking consumer confidence, the Fed is more likely than not to make an additional cut to the target rate at the following decision on January 31," said Adams.
Gold and silver: Key levels to watch
According to Rahul Kalantri, VP Commodities, Mehta Equities, gold has support at $4,175 and $4,145, while resistance is at $4,270 and $4,295. Silver has support at $57.70 and $56.85, while resistance is at $58.95 and $59.45.
In INR, Kalantri said gold has support at ₹1,29,450 and ₹1,28,750 while resistance is at ₹1,30,950 and ₹1,31,700. Silver has support at ₹1,80,750 and ₹1,79,20,0 while resistance is at ₹1,83,510 and ₹1,84,670.
According to brokerage firm Motilal Oswal Financial Services, the MCX gold February expiry has key support at ₹1,29,800 per 10 grams, followed by ₹1,29,300. On the other hand, resistance is at ₹1,30,800 and ₹1,31,400.
MCX silver March expiry has support at ₹1,80,700 and ₹1,78,650, while resistance is at ₹1,84,000 and ₹1,85,700 per kg, said the brokerage firm.
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
