Gold price today: The rates of gold and silver declined in the domestic futures market on Thursday morning (December 18) due to profit booking at record high levels amid a mild uptick in the US dollar, ahead of the US CPI inflation data. MCX gold February contracts were 0.20% down at ₹1,34,619 per 10 grams around 9:20 am. MCX silver March contracts were 0.47% down at ₹2,06,451 per kg at that time.
On Wednesday, MCX gold February futures closed 0.36% higher at ₹1,34,894 per 10 grams. MCX silver March futures hit a record high of ₹2,07,833 and closed 4.9% higher at ₹2,07,435 per kg in the previous session.
The focus of investors is now on the US Consumer Price Index (CPI) data for November, which is due later today, and the Personal Consumption Expenditures price index data on Friday.
The inflation prints will shape the expectations of the interest rate trajectory of the US Federal Reserve. Gold prices may move higher if inflation prints come below expectations.
Meanwhile, job market trends indicate the US Fed may reduce rates by 25 bps in January. On Tuesday, data showed that the US unemployment rate rose to 4.6% in November, the highest since September 2021.
The Bank of Japan’s (BoJ) policy decision on Friday is expected to trigger some volatility in markets, as the BoJ is widely anticipated to raise its benchmark rate to its highest level in three decades.
“Gold and silver prices remain volatile ahead of the BOJ policy meeting, but they could hold their key support levels of $4,140 per troy ounce and $57.20 per troy ounce, respectively,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.
Gold and silver: Key levels to watch
According to Jain, gold has support at $4,340 and $4,300, while resistance is at $4,400 and 4,440 per troy ounce. Silver has support at $65.00 and $63.60, while resistance is at $68.20 and $70.00 per troy ounce in today’s session.
On the MCX, Jain sees support for gold at ₹1,34,200 and ₹1,33,650 and resistance at ₹1,35,500 and ₹1,36,300. MCX silver has support at ₹2,04,4400 and ₹2,02,000, and resistance is at ₹2,10,000 and ₹2,14,000, said Jain.
“We suggest buying gold in the range of ₹1,34,400 to ₹1,34,000 with a stop loss of ₹1,33,300 for the target of ₹1,35,500 and ₹1,36,200 and silver on dips in the range of ₹2,05,000 to ₹2,02,000 with a stop loss of ₹1,98,800 for the target of ₹2,10,000 and ₹2,14,000,” said Jain.
(This is a developing story. Please check back for fresh updates.)
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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.
