Gold price today: The rates of gold jumped by more than a per cent in early deals on the MCX on Tuesday (November 25), supported by growing expectations of a rate cut by the US Federal Reserve in December and healthy spot demand due to the ongoing wedding season. MCX Gold December futures were 1% up at ₹1,25,106 per 10 grams around 9:15 am. MCX Silver December contracts were 1.34% up at ₹1,56,551 per kg at that time.
International gold prices rose by nearly 2% in the previous session as hopes for a US Fed rate cut pushed investors toward safe-haven assets.
Reuters reported, quoting New York Fed President John Williams, saying on Friday that interest rates in the US could be cut soon. He believes lowering rates won’t hurt the Fed’s fight against inflation and will help protect jobs.
According to the CME FedWatch Tool, market participants are now pricing in an 81% chance of a Fed rate cut in December, compared to 40% last week.
Gold prices tend to rise in a low-interest-rate environment, as the yellow metal does not yield interest or income. So, when interest rates are low and other investments give smaller returns, gold becomes more attractive to investors.
The focus now is on a barrage of economic data delayed by the US government shutdown, including US retail sales, jobless claims and producer price figures.
“In the current market context, gold remains a strong portfolio anchor, with a mild increase in price compared to the previous week in India. This price uptick has been driven by ongoing wedding-season jewellery demand, alongside its established role as an inflation hedge and a hedge against currency risk,” said Aksha Kamboj, Vice President, India Bullion and Jewellers Association (IBJA) and Executive Chairperson, Aspect Global Ventures.
“Wider global cues, such as a strong US dollar and monetary shifts in various central bank approaches, can be expected to soften modest upsides, but the domestic fundamentals seem favourable. Investors are buying gold not only for ornamental value but also for long-term preservation of real wealth,” said Kamboj.
Gold and silver: Experts highlight key levels to watch
According to Rahul Kalantri, VP-Commodities, Mehta Equities, gold has support at $4,100 and $4,065, while resistance is at $4,170 and $4,195. Silver has support at $51 and $50.65, while resistance is at $51.70 and $52.10.
In INR, Kalantri said gold has support at ₹1,23,150 and ₹1,22,580, while resistance is at ₹1,24,650 and ₹1,25,200. Silver has support at ₹1,53,650 and ₹1,52,800, while resistance is at ₹1,56,140 and ₹1,57,000.
Manoj Kumar Jain of Prithvifinmart Commodity Research said gold has support at $4,134 and $4,010, while resistance is at $4,200 and $4,240 per troy ounce, and silver has support at $50.60 and $50.15, while resistance is at $51.50 and $52 per troy ounce in today’s session.
On the MCX, Jain said gold has support at ₹1,24,700 and ₹1,24,100 and resistance is at ₹1,26,200 and ₹1,27,000, while silver has support at ₹1,53,100 and ₹1,52,000 and resistance is at ₹1,56,600 and ₹1,58,000.
“We suggest waiting for some corrective dips for initiating fresh long positions in gold and silver,” said Jain.
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