Gold prices moved upward in early trade on Thursday as domestic futures extended their recent gains. On the MCX, the Gold December futures were up 0.37% at Rs. 1,25,925 per 10 grams, while MCX Silver December futures advanced 0.85% to Rs. 1,63,849 per kg.
The uptick reflects a combination of robust spot buying and rising global expectations of US Federal Reserve rate cut.
Gold prices held steady in Mumbai with a flat reflection between both day-over-day (DoD) trading prices-. Specifically, gold trading prices for 24-carat dropped by one rupee to today settled at Rs. 12774; while the other major trade unit for 24-carat is ten grams which has traded down to a total value of Rs. 127740. In contrast to the previous day where gold traded at a value of Rs. 127750 for the same unit sizes.
The same trend is seen in 22-carat gold where today the price reflects a 1 rupee decrease which places 22-karat gold priced at Rs. 11709 for one gram down from Rs. 11710 yesterday. For 10 grams, an unattractive valuation has resulted since the price dipped to Rs. 117090 down from Rs. 117100 from the prior day.
Chennai had seen a movement upwards in gold pricing as prices have reacted and increased after several large purchases were made in advance of the wedding season. With prices for 24-carat having increased Rs. 12,916 per gram up from Rs. 12,840 the previous day for 10 grams which increased to Rs. 129160 when previously valued at Rs. 128400.
Stronger physical demand during the ongoing wedding season has lent support to bullion prices in the domestic market. Globally, a weakening US dollar and a surge in rate-cut expectations have added bullish momentum.
Traders now see an 87% probability of a December rate cut, as per the CME FedWatch tool, ahead of the FOMC meeting on December 9-10.
The RBI’s MPC meeting scheduled for December 3-5 is also being closely monitored by precious metal traders for cues on domestic liquidity and policy direction.
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Manoj Kumar Jain of Prithvifinmart pointed out that while optimism around Fed easing supports gold, profit-booking may limit sharp upside.
He recommends buying gold between Rs. 1,27,200 and Rs. 1,26,600, keeping a stop loss at Rs. 1,26,000, and targeting Rs. 1,28,200-Rs. 1,29,000.
Domestically on MCX, gold faces support at Rs. 1,27,100 and Rs. 1,26,600, with resistance at Rs. 1,28,200 and Rs. 1,29,000.
Silver’s support is seen at Rs. 1,64,400 and Rs. 1,63,500, with resistance at Rs. 1,67,700 and Rs. 1,70,000.
On the global front, Jain notes support for gold at $4,160 and $4,134, with resistance at $4,210 and $4,240 per ounce. For silver, support stands at $52.70-$52, while resistance lies at $53.80-$54.20.