Gold price today: The rates of gold and silver slipped in morning deals on the MCX on Thursday, November 27, on profit booking after the recent rally, even as focus remained on the US Fed monetary policy next month. MCX Gold December futures were 0.36% down at ₹1,25,480 per 10 grams around 9:10 am. MCX Silver December contracts were 0.20% down at ₹1,60,950 per kg at that time.
The US Federal Open Market Committee (FOMC) will meet on December 9-10 to decide the monetary policy at a time when the US job market is showing weakness and inflation remains sticky.
US retail sales data and the Producer Price Index data for September have raised hopes for a rate cut in December.
US retail sales grew at a slower pace than expected in September. The US Commerce Department’s data showed that overall retail sales rose by 0.2% on a month-on-month basis in September, following August’s 0.6% increase. US consumer confidence dropped in November to its lowest level since April.
The US Labour Department showed that Producer Prices Index (PPI) rose in line with forecasts, reaching 0.3% in September.
According to the CME’s FedWatch tool, traders are pricing in an 85% chance of a rate cut in December.
Meanwhile, a weaker US dollar limited the decline in gold prices. The dollar index slipped by 0.10%, influencing sentiment for gold. A decline in the US currency makes the precious metal cheaper in other currencies, thereby enhancing its demand.
Experts expect gold prices to remain volatile due to the movement of the US dollar and ahead of key macro data in Europe.
“We expect gold and silver prices to remain volatile this week amid volatility in the dollar index, volatility in the global financial markets, ahead of the key European economic data,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.
Jain expects gold to trade in the range of $4,040-$4,270 per troy ounce and silver to trade in the range of $50.00-$54.70 per troy ounce this week.
Gold and silver: Key levels to watch
According to Jain, gold has support at $4,164 and $4,140, while resistance is at $4,240 and $4,270 per troy ounce, and silver has support at $52.20 and $51.70, while resistance is at $53.40 and $54.00 per troy ounce in today’s session.
On the MCX, gold has support at ₹1,27,000 and ₹1,26,350 and resistance is at ₹1,28,200 and ₹1,29,100, while silver has support at ₹1,63,300 and ₹1,62,000 and resistance is at ₹1,67,700 and ₹1,70,000, said Jain.
Jain suggests buying gold around ₹1,27,000 with a stop loss below ₹1,26,300 for the targets of ₹1,28,200 and ₹1,29,000, and buying silver around ₹1,63,500 and ₹1,62,000 range with a stop loss below ₹1,60,600 for the targets of ₹1,67,700 and ₹1,70,000.
Rahul Kalantri, VP – Commodities, Mehta Equities, said gold has support at $4,130 and $4,095, while resistance is at $4,195 and $4,225. Silver has support at $52.65 and $52.35, while resistance is at $53.65 and $53.90.
In INR, Kalantri said gold has support at ₹1,25,350 and ₹1,24,780 while resistance is at ₹1,26,650 and ₹1,27,100. Silver has support at ₹1,60,350 and ₹1,59,600, while resistance is at ₹1,62,110 and ₹1,63,000.
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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.
