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Gold prices opened lower on Monday, December 8, as traders booked profits after last week’s rise. A softer US dollar and heightened expectations of a Federal Reserve rate cut later this week helped cushion the decline.
At around 10:05 AM, MCX gold February futures were trading 0.03% up at Rs 1,30,500 per 10 grams, while MCX silver March futures dropped 0.86% to Rs 1,81,831 per kg.
Gold Prices in Mumbai increased slightly; the price of 24K gold is Rs 13,042 per gram, up from the previous day's Rs 13,015. The price of 10 gms of 24K gold also went up to Rs 1,30,420 from Rs 1,31,150.
Similar to 24K gold, the price of 22K gold also increased modestly at Rs 11,958 from yesterday’s Rs 11,930 per gram. For 10 grams of 22K gold, the price rose to Rs 1,19,550 from Rs 1,19,300.
As with Mumbai, India, the price of Gold also increased in Delhi. The price of 24K gold is priced at Rs 13,057 per gram, compared to the price that was Rs 13,303 yesterday.
The price of 10 grams of Gold 24K saw similar movement from Rs. 1,30,300 for 10 grams to Rs. 1,30,570.
Unpredictability and volatility levels are at an extreme in advance of the Federal Reserve's December 10th monetary policy meeting.
Recent data from the economy has created confusion because the PCE inflation Index increased by 0.3 percent from August to September for the second consecutive month. Year-over-year (YY) inflation rose by 2.8 percent.
The CME FedWatch tool indicates that there is an 88.4 percent chance that the Federal Reserve will cut interest rates by 25 basis points, producing an expectation of a much more accommodating position than previously anticipated.
As a result of these expectations, the US dollar index has declined to approximately a six-week low (approx. 98.76) and as a result gold becomes more appealing to international buyers.
Also Read: Gold ETFs Hit Rs. 1 Lakh Crore: Why Millions of Indians Are Betting Big on ETFs in 2025
Internationally, gold has support in the range of US$4154 - US$4200 and resistance in the range of US$4250 - US$4288. Silver has support in the range of US$56.80 - US$57.70 with resistance in the range of US$60 -US$61.40.
On MCX, gold has support in the range of Rs 1,29,550 - Rs 1,28,850 and resistance in the range of Rs 1,31,250 - Rs 1,31,800; while silver has support in the range of Rs 1,81,750 - Rs 1,80,200 and resistance in the range of Rs 1,84,710 - Rs 1,85,850.
