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Gold prices surged in early trade on Tuesday as renewed optimism around a potential US Federal Reserve rate cut boosted demand. On the Multi Commodity Exchange (MCX), Gold December futures rose 1.08% to Rs. 1,25,194 per 10 grams around 10:20 AM, while Silver December contracts climbed 1.34% to Rs. 1,56,551 per kg.
The sharp move comes after international gold prices rallied close to 2% in the previous session. Traders turned bullish after comments from New York Fed President John Williams suggested that US interest rates could be lowered sooner.
The CME FedWatch Tool now shows an 81% probability of a December rate cut, doubling from last week’s 40%.
Meanwhile, investors are also watching for a series of US economic data releases that were delayed by the government shutdown.
Retail sales, weekly jobless claims, and producer price inflation figures will be key indicators of the strength of the US economy and may influence the Fed’s policy outlook.
In Mumbai, gold prices rose. The price of 24-carat gold reached Rs. 12,704 per gram, up from Rs. 12,513 the day before, while 10 grams traded at Rs. 1,27,040, compared to Rs. 1,25,130 the previous day.
Similarly, 22-carat gold increased to Rs. 11,645 per gram from Rs. 11,470, and the price of 10 grams of gold reached Rs. 1,16,450 from Rs. 1,14,700.
Gold prices rose in Chennai. The 24-carat price increased from Rs. 12,567 per gram on Monday to Rs. 12,786 per gram, and for 10 grams, from Rs. 1,25,170 to Rs. 1,27,860.
The same applies for 22-carat gold, with prices marginally increasing to Rs. 11,720 per gram on Tuesday from Rs. 11,520 per gram, and 10 grams up from Rs. 1,15,200 to Rs. 1,17,200.
Also Read: Why are Bitcoin, XRP, Solana, and Ethereum Falling While Gold and Silver Rise?
As of this time, it is important to note the support and resistance levels of both metals, as they will be repeatedly updated and tracked. According to Rahul Kalantri of Mehta Equities, gold support is at $4,100 and $4,065, and resistance at $4,170 and $4,195. The same holds true for silver at support levels of $51 and $50.65 and resistance levels of $51.70 and $52.10.
Manoj Kumar Jain of Prithvifinmart Commodity Research will provide a broader range of levels for both metals; he quotes the support levels for gold at $4,134 and $4,010 and resistance levels at $$4,170, with silver also having a $50.15 support and $51.70 resistance.
On the MCX, he expects support at Rs. 1,24,700-Rs. 1,24,100, with resistance at Rs. 1,26,200-Rs. 1,27,000.
