Gold price today: MCX Gold rate lacklustre ahead of Fed Chair Powell's speech; experts share strategy for bullion trade

Gold price today: MCX Gold rates were lacklustre in early trading on Wednesday, December 4, as investors limited their bets, seeking greater clarity on the US Federal Reserve's interest rate trajectory. The focus has now shifted to Federal Reserve Chair Jerome Powell's speech scheduled for later in the day. MCX Gold for February 5 expiry traded 0.03 per cent lower at ₹76,879 per 10 grams around 9:10 am.

International gold prices held steady as market participants awaited additional US jobs data and remarks from Federal Reserve Chair Jerome Powell to gain further insights into the US interest rate outlook.

The focus is now on the upcoming ADP employment report, Powell's speech on Wednesday, and the US payrolls report due on Friday.

On Tuesday, data showed that the US job openings slightly rose in October while layoffs declined.

Meanwhile, the US Fed policy outcome is due on December 18. According to a Reuters report, quoting the CME Group's FedWatch Tool, markets see a 73 per cent chance of a 25-basis-point reduction by the Fed this month.

On the domestic front, the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) will commence its three-day meeting on Wednesday, December 4, to decide on policy rates and the monetary stance.

Most analysts expect the central bank to maintain the status quo due to persistently high inflation. However, attention will be paid to Governor Shaktikanta Das' remarks regarding inflation-growth dynamics and the central bank's approach to addressing the economic slowdown.

The RBI MPC outcome is due on Friday, December 6.

Experts strategy for bullion trade

Rahul Kalantri, VP of commodities at Mehta Equities, observed that the upcoming speech by the US Federal Reserve Chairman and the US ADP non-farm payroll data, due later today, could provide further direction for the precious metals market.

"Gold has support at $2,628-$2,614, with resistance at $2,660-$2,674. Silver has support at $30.82-$30.65 and resistance at $31.22-$31.40. In INR terms, gold has support at ₹76,580- ₹76,410 and resistance at ₹77,070- ₹77,240, while silver has support at ₹91,550- ₹90,880 and resistance at ₹92,850- ₹93,340," said Kalantri.

Manoj Kumar Jain of Prithvifinmart Commodity Research suggests buying gold on dips around ₹76,600 with a stop loss of ₹76,300 for the target of ₹77,200.

"Gold has support at $2,654-2,640, while resistance at $2,680-2,700 per troy ounce and silver has support at $31.10-30.80, while resistance is at $31.74-32.00 per troy ounce in today’s session. On the MCX, gold has support at ₹76,660-76,400 and resistance at ₹77,220-77,500, while silver has support at ₹91,600-90,850 and resistance at ₹92,800-93,500," said Jain.

Read all market-related news here

Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.