Gold price today: Rates decline amid strengthening US dollar, bond yields; experts unveil strategy for MCX Gold

Gold price today: Gold rates declined in the domestic futures market in the morning sessions on Monday, December 23, on profit booking amid a rise in the US dollar and bond yields. The US dollar and bond yields rose after recent macro data showed that the US economy remains strong. However, a decline in US inflation eased concerns about the slow pace of US Fed rate cuts next year to some extent. This capped the losses for bullion. MCX Gold for February 5 expiry traded 0.05 per cent lower at ₹76,385 per 10 grams around 9:15 AM.

Gold prices gained in the previous session after some easing in the dollar index and the bond yields.

Manoj Kumar Jain of Prithvifinmart Commodity Research pointed out that the dollar index slipped from two-year highs after the University of Michigan’s inflation expectations showed a reading of 2.8 per cent against the previous reading of 2.9 per cent.

Gold prices have gained significantly this year, beating benchmark stock indices of the Indian stock market- the Sensex and the Nifty 50. In comparison, the Nifty 50 has gained around 8.50 per cent and the Sensex has risen 8 per cent return.

The MCX gold rate has jumped around 21 per cent year-to-date. In comparison, the spot gold price has surged nearly 27 per cent, supported by geopolitical tension, gold buying by the majority of the central banks, and rising demand by investors amid concerns over economic uncertainty.

Experts' strategy for MCX Gold

Jain expects gold and silver prices to remain volatile this week. He suggests buying gold around ₹76,000 with a stop loss of ₹75,650 for the target of ₹76,700 and silver around ₹87,700 with a stop loss of ₹86,800 for the target of ₹89,500.

"Gold has support at $2,622-2,600, while resistance at $2,664-2,684 per troy ounce and silver has support at $29.55-29.20, while resistance is at $30.30-30.66 per troy ounce in today’s session," said Jain.

"On the MCX, gold has support at ₹76,080-75,800 and resistance at ₹76,660-77,000, while silver has support at ₹87,650-86,800 and resistance at ₹89,100-90,000," Jain said.

Rahul Kalantri, VP of commodities at Mehta Equities, said gold has support at $2,600-2,581 while resistance at $2,640-2,657. Silver has support at $29.40-29.20 while resistance is at $29.80-30. In INR terms, gold has support at ₹76,220-75,040 while resistance at ₹76,670-76,840. Silver has support at ₹87,850-87,080, while resistance at ₹89,130-89,940," said Kalantri.

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