Gold price today: The rates of gold and silver dropped in the domestic futures market on Monday (November 17) morning amid the dollar’s rise and weak global cues. MCX Gold December futures were 0.21 per cent down at ₹1,23,300 per 10 grams at 9:10 am. MCX Silver December contracts were 0.38 per cent down at ₹1,55,424 per kg at that time.
The dollar index stayed firm, rising by 0.14 per cent, weighing on gold demand and prices. Gold is backed by dollars, so a rise in the US currency makes the yellow metal expensive in overseas currencies, influencing its demand.
The focus now is on the US macro data this week, such as the September nonfarm payrolls report on Thursday. These data prints will shape market perception about the health of the world’s largest economy and expectations for the US Federal Reserve’s upcoming monetary policy decision in December.
The recently ended US government shutdown has delayed the release of government data. However, media reports suggested that the Commerce Department’s Bureau of Economic Analysis is to update its schedule of data releases.
Meanwhile, according to Reuters, “traders are currently pricing in a 46 per cent probability of a 25 basis points Fed rate cut next month, down from 50 per cent last week.” Gold prices tend to rise in a low-interest-rate environment.
“The upcoming non-farm payrolls report is expected to offer crucial insight into the Federal Reserve’s policy direction. Expectations of a December rate cut dropped to 46 per cent after hawkish Fed signals,” said Rahul Kalantri, VP of commodities at Mehta Equities.
“Despite near-term volatility, both precious metals are on track for their strongest annual performance in decades. Robust central bank buying and persistent safe-haven interest amid fiscal and geopolitical uncertainty continue to fuel bullion’s upward momentum,” Kalantri noted.
Gold and silver: Key levels to watch
According to Kalantri, gold has support at $4,035 and $4,000, while resistance is at $4,115 and $4,140. Silver has support at $50.30 and $49.85, while resistance is at $51.25 and $51.50.
In INR, Kalantri said gold has support at ₹1,22,950 and ₹1,22,380 while resistance is at ₹1,24,950 and ₹1,25,500. Silver has support at ₹1,53,850 and ₹1,52,500, while resistance is at ₹1,56,740 and ₹1,57,880.
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.