Gold price today: Rates jump almost 1% on positive global cues; experts share strategy for MCX Gold

Gold price today: Gold rates posted solid gains in the domestic futures market on Monday morning, supported by positive global cues and robust buying in the domestic spot market. This came despite a strong US dollar and lingering concerns over the pace of US Federal Reserve interest rate cuts, which continued to weigh on market sentiment. MCX Gold for December 5 expiry was 0.71 per cent up at ₹74,470 per 10 grams around 12:20 pm.

According to a Reuters report, international spot gold prices rose about 0.4 per cent to $2,571.11 per ounce by 0041 GMT, after hitting a two-month low last week. Gold posted its biggest weekly decline in more than three years on Friday.

Meanwhile, amid strong US economic and inflation data, the market is trimming its expectations for a rate cut by the US Fed in December.

Rate cuts typically act as positive triggers for bullion. However, if the pace and magnitude of these cuts fall short of market expectations, gold prices may struggle to sustain their upward momentum.

Firming US dollar and bond yields due to robust US macroeconomic data are key negatives for gold prices. However, experts remain positive about the yellow metal for the long term due to geopolitical uncertainty and the start of the US rate cut cycle.

Manav Modi, a commodity research analyst at Motilal Oswal Financial Services, observed that gold prices rose after last week's sharp declines amidst updates from US President Joe Biden’s administration, increasing the geopolitical premium in the market.

"Market participants reacted to reports suggesting that President Biden's administration has allowed Ukraine to use US-made weapons to strike deep into Russia, in a significant reversal of Washington's policy in the Ukraine-Russia conflict. On the data front, US retail sales increased slightly more than expected in October, highlighting the economy's resilience. US headline inflation was also reported to be better than expected at 2.6 per cent, raising questions over the Fed's rate cut stance ahead," Modi pointed out.

"Fed Chair Jerome Powell and a few other US central bank officials are expected to speak this week. Along with Fed officials' comments, this week's focus will also be on the preliminary manufacturing and services PMI data from major economies," said Modi.

Experts' strategy for MCX Gold

According to Rahul Kalantri, VP of commodities at Mehta Equities, gold has support at $2,568-2,545, with resistance at $2,610-2,625. Silver has support at $30.38-30.15, while resistance is seen at $30.92-31.20.

In INR, Kalantri said gold has support at ₹73,880-73,750 and resistance at ₹74,410-74,680. Silver has support at ₹88,080-87,550, with resistance at ₹89,350-90,980.

Manoj Kumar Jain of Prithvifinmart Commodity Research suggests staying away from gold and silver in today's session amid strong gains in the dollar index and waiting for some stability in the markets to initiate fresh positions in these precious metals.

Jain expects gold and silver prices to remain weak amid strength in the dollar index, US bond yields and crypto rally.

"Gold has support at $2,554-2,540, while resistance at $2,584-2,600 per troy ounce and silver has support at $30.10-29.74, while resistance is at $30.70-31.00 per troy ounce in today’s session. On the MCX, gold has support at ₹73,720-73,440 and resistance at ₹74,220-74,480 while silver has support at ₹87,750-87,000 and resistance at ₹89,100-90,000," 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.