Gold price today: The rates of gold and silver dropped on the MCX in morning trade on Thursday, December 4, amid profit booking due to the dollar’s rise against its peers and tepid spot market demand. MCX gold February contracts were 0.13% down at ₹1,30,288 per 10 grams, while MCX silver March contracts were 0.08% down at ₹1,82,200 per kg.
The dollar index reclaimed the level of 99 after slipping to 98.85 in the previous session. However, the gains of the greenback remained limited on increased US Fed rate-cut bets.
The focus of the domestic market is on the Reserve Bank of India (RBI) Monetary Policy Committee (MPC) policy decision on December 5. Experts are divided in their opinions about the potential policy decision; some expect a 25-basis-point rate cut, while others believe the central bank will maintain the status quo on rates for the third consecutive policy meeting.
A major trigger for gold would be a rate cut by the US Federal Reserve next week. The US Federal Open Market Committee (FOMC) will meet on December 9-10 to decide on the benchmark interest rates.
As Reuters reported, the CME’s FedWatch tool shows an 89% chance that the Fed will announce rate cuts on December 10.
(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.
