Gold rates were slightly higher, while silver traded lower due to profit booking at record high levels on the MCX on Friday morning (December 12). MCX gold February contracts were 0.10% up at ₹1,32,599 per 10 grams around 9:10 am, while MCX silver March contracts were 0.50% down at ₹1,97,951 per kg at that time.
In the previous session, MCX silver hit a record high of ₹1,98,814 per kg and closed 5.33% higher at ₹1,98,799. Gold February futures contract settled at ₹1,32,469 per 10 grams, gaining 2%.
Both precious metals clocked solid gains after the US Federal Reserve cut the federal funds rate by 25 bps and signalled the possibility of one more rate cut next year.
“Gold and silver posted solid gains after the FOMC meeting outcomes. The US Fed cuts interest rates by 25 basis points as per market expectations. The dollar index slipped to a two-month low after the FOMC meeting outcomes and supported gold and silver prices,” Manoj Kumar Jain of Prithvifinmart Commodity Research observed.
The dollar index touched 98.30 on the downside, making gold cheaper for overseas buyers and enhancing its demand.
Meanwhile, the rupee is at its record low against the US dollar. The weakness in the domestic currency is also supporting gold prices in India.
Investors’ focus is now on the US inflation and non-farm payrolls report next week, which will offer fresh cues on the Fed’s monetary policy path.
Is it the right time to buy gold and silver?
According to Jain, gold and silver prices may remain volatile in today’s session amid volatility in the dollar index, global financial markets and ahead of the key US economic data.
He suggests waiting for some correction before initiating fresh longs in gold and silver.
“We suggest waiting for some corrective dips for initiating fresh long positions in gold and silver, and also suggest strictly avoiding short selling in both precious metals,” said Jain.
Jain said gold has support at $4,264 and $4,220, while resistance is at $4,355 and $4,400 per troy ounce, and silver has support at $63.50 and $62.40, while resistance is at $65 and $67.40 per troy ounce in today’s session.
MCX gold has support at ₹1,31,660 and ₹1,31,000 and resistance at ₹1,33,300 and ₹1,34,000, while silver has support at ₹1,96,600 and ₹1,94,400 and resistance at ₹2,00,000 and ₹2,04,000, said Jain.
Jigar Trivedi, Senior Research Analyst at Reliance Securities, believes one can buy silver after about a 10% correction.
“It is better to wait for a 7–10% correction before entering silver—either through ETFs or futures—for investment purposes,” said Trivedi.
Trivedi believes MCX gold February futures may rise to ₹1,33,000 per 10 grams.
Rahul Kalantri, VP of commodities at Mehta Equities, said gold has support at $4,230 and $4,185 while resistance is at $4,310 and $4,345. Silver has support at $63 and $62.35, while resistance is at $64.40 and $64.95.
In INR, Kalantri said gold has support at ₹1,31,450 and ₹1,30,550, while resistance is at ₹1,33,150 and ₹1,34,900. Silver has support at ₹196,950 and ₹1,95,200, while resistance is at ₹2,00,550 and ₹2,01,700.
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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.