Gold prices on Multi Commodity Exchange of India (MCX) opened lower Tuesday amid profit booking after a steep rally in the previous session. Silver prices also declined more than 1.5%.
MCX gold rate opened lower at ₹1,30,109 per 10 grams as against its previous close of ₹1,30,652 level. MCX silver price opened lower at ₹1,80,701 per kg as compared to its previous close of ₹1,82,030 level.
In the international market, gold prices edged lower after it touched a six-week peak in the previous session, as investors booked profits even as they awaited remarks by the Federal Reserve Chair and key economic data for interest rate cut cues.
Spot gold price fell 0.2% to $4,222.93 per ounce, after hitting its highest level since October 21 on Monday. US gold futures for December delivery were down 0.4% at $4,256.30 per ounce.
“Gold fell as investors took profits after prices reached a six-week peak, amid mounting expectations of a US interest rate cut next week. Investor focus now turns to Fed Chair Jerome Powell’s remarks later today for further clues on the central bank’s interest rate trajectory,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities.
Traders currently assign an 88% probability to a 25 bps reduction at the Fed’s upcoming meeting, reinforced by weak US economic data and dovish comments from several Fed officials.
Meanwhile, the US manufacturing sector contracted for the ninth consecutive month in November, increasing pressure on the Fed to ease policy.
Gold Price Outlook
Trivedi expects MCX gold price for February expiry may drop to ₹130,000 per 10 grams.
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