Gold rate today: MCX gold prices rose nearly 1% in early trade on Monday, December 1, driven by growing expectations of interest rate cuts by the US Federal Reserve and the Reserve Bank of India (RBI) this month, while robust spot demand continues to provide key support. MCX gold February contracts were 0.71% up at ₹1,30,425 per 10 grams around 9:10 am, while the MCX silver March futures were 1.9% up at ₹1,78,289 at that time.
The Monetary Policy Committee (MPC) of the RBI will meet on December 3, 4, and 5 to decide on benchmark interest rates and the policy stance, at a time when inflation is at a record low and economic growth is robust.
On the other hand, the US Federal Open Market Committee (FOMC) will convene on December 9-10 to decide on the federal funds rate.
The market is pricing in a rate cut from the US Fed. According to the CME’s FedWatch tool, traders are pricing in an 87% chance of a US Fed rate cut next week.
However, the RBI may go for a pause due to favourable growth-inflation dynamics. growth surged to a six-quarter high of 8.2%, while plunged to a record low of 0.25% in October.
Gold prices have seen sharp gains this year due to increased geopolitical tensions, concerns over the economic ramifications of US tariffs, aggressive central bank buying and robust retail demand.
Domestic spot gold prices have surged 66% this year so far.
“Gold price has recorded gains in nearly every month this year, positioning it for its best annual performance since 1979. The metal’s ascent has been supported by elevated central-bank purchases and strong inflows into ETFs, which helped push prices to a record high above $4,380 per ounce last month,” Jigar Trivedi, Senior Research Analyst at Reliance Securities, noted.
Gold and silver: Experts highlight key levels to watch
According to Manoj Kumar Jain of Prithvifinmart Commodity Research, gold has support at $4234 and $4,200, while resistance is at $4,300 and $4,340 per troy ounce. Silver has support at $55.50 and $54.70, while resistance is at $57.40 and $58 per troy ounce in today’s session.
MCX gold, as per Jain, has support at ₹1,28,200 and ₹1,27,700, and resistance is at ₹1,30,300 and ₹1,31,200, while silver has support at ₹1,72,500 and ₹1,69,600 and resistance is at ₹1,78,800 and ₹1,81,000.
Jain suggests buying gold between ₹1,29,500 and ₹1,28,800 with a stop loss below ₹1,28,100 for the target of ₹1,30,300 and ₹1,31,200, and also buying silver between ₹1,74,000 and ₹1,71,000 with a stop loss below ₹1,69,600 for the target of ₹1,78,800 and ₹1,81,000.
Rahul Kalantri, VP of commodities at Mehta Equities, said gold has support at $4,165 and $4,135 while resistance is at $4,245 and $4,265. Silver has support at $55.80 and $55.25, while resistance is at $56.95 and $57.40.
In INR, Kalantri said gold has support at ₹1,26,350 and ₹1,25,550 while resistance is at ₹1,27,650 and ₹1,28100. Silver has support at ₹1,70,250 and ₹1,69,200, while resistance is at ₹1,73,110 and ₹1,74,300.
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