Gold price today: Rates decline on profit booking as US inflation rises in Nov; experts unveil strategy for MCX Gold | Stock Market News

Gold price today: Gold rates declined in the domestic futures market Thursday morning despite positive global cues after the US inflation data came broadly on expected lines, raising hopes for a 25 bps rate cut by the US Federal Reserve next week on December 18.

In international markets, gold rose for a fifth straight session on Thursday to hover near a more than two-week peak, reported Reuters.

MCX Gold for February 5 expiry traded 0.25 per cent lower at ₹78,804 per 10 grams around 9:15 am.

The US consumer price index (CPI) rose to 2.7 per cent in November from a year ago, up slightly from 2.6 per cent in October. Even as the inflation prints came in line with forecasts, they climbed for a second consecutive month, registering the steepest gain in the last seven months amid higher food prices and other sectors.

After the US CPI, the focus now is on the US Producer Price Index (PPI) data, due later today.

Market participants appear cautious ahead of the US Federal Open Market Committee (FOMC) meeting on December 17-18. Experts believe the US central bank will still go for a 25 bps rate cut for the third time next week, taking note of the cooling labour market even though the November inflation numbers increased by the most in seven months.

Gains in the dollar index also weighed on gold prices in India. Since gold is traded in the dollar globally, the rise in the US currency makes the yellow metal expensive in other currencies and weighs on its demand.

Experts unveil strategy for MCX Gold

Manoj Kumar Jain of Prithvifinmart Commodity Research suggests buying gold on dips around ₹78,750 with a stop loss of ₹78,440 for the target of ₹79,400 and buying silver around ₹95,200 with a stop loss of ₹94,400 for the target of ₹96,800.

“Gold has support at $2,734-2,722, while resistance at $2,782-2,804 per troy ounce and silver has support at $32.66-32.40, while resistance is at $33.30-33.64 per troy ounce in today’s session. On the MCX, gold has support at ₹78,770-78,480 and resistance at ₹79,330-79,650, while silver has support at ₹95,150-94,400 and resistance at ₹96,650-97,350,” said Jain.

Rahul Kalantri, VP of commodities at Mehta Equities, pointed out that geopolitical tensions, central bank purchases, and discussions of Chinese stimulus continue to bolster the outlook for gold, which is edging closer to record highs.

“Gold has support between $2,688 and $2,670, with resistance between $2,722 and $2,738. Silver has support at $31.65-$31.47 and resistance at $32.20-$32.40. In INR terms, gold is supported between ₹78,780 and ₹78,540, with resistance between ₹79,290 and ₹79,500. Silver finds support at ₹95,050- ₹94,480, with resistance between ₹96,450 and ₹96,940,” said Kalantri.

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