Gold price today: The rates of gold and silver rose in the domestic futures market on Friday (November 28) morning on healthy spot demand and growing expectations of a rate cut by the US Federal Reserve in December. MCX gold December futures traded 0.39% higher at ₹1,25,999 per 10 grams around 9:05 am, while MCX silver December contracts were 0.85% up at ₹1,63,849 per kg at that time.
Healthy spot demand in the domestic market, amid the ongoing wedding season, hopes for a US Fed rate cut, and the dollar’s weakness, have been the main triggers behind the rise in gold futures prices over the last few days. The yellow metal, however, has also seen some volatility due to profit booking, reacting to news flows on the Russia-Ukraine front.
According to the CME’s FedWatch tool, traders see an 87% chance of a rate cut in December. The US Federal Open Market Committee (FOMC) will meet on December 9-10 to decide monetary policy.
Meanwhile, the Monetary Policy Committee (MPC) of the RBI will meet on December 3, 4 and 5.
The US dollar looks set to see its steepest weekly loss in four months on increased US Fed rate-cut bets.
“The US-led Russia-Ukraine peace deal optimism is limiting gains of precious metals, but Fed rate cuts optimism, and profit taking in the dollar index are supporting prices,” Manoj Kumar Jain of Prithvifinmart Commodity Research observed.
Gold and silver: How to trade?
Jain suggests buying gold and silver even as he expects the precious metals to remain volatile in today’s session due to volatility in the dollar index and the global financial market.
“We expect gold and silver prices to remain volatile in today’s session amid volatility in the dollar index, global financial markets and ahead of the key European economic data,” said Jain.
“We suggest buying gold in the range of ₹1,27,200 and ₹1,26,600 with a stop loss below ₹1,26,000 for the targets of ₹1,28,200 and ₹1,29,000 and buying silver in the range of ₹1,65,500 and ₹1,64,000 with a stop loss below ₹1,62,500 for the targets of ₹1,67,700 and ₹1,70,000,” said Jain.
According to Jain, gold has support at $4,160 and $4,134, while resistance is at $4,210 and $4,240 per troy ounce, and silver has support at $52.70 and $52, while resistance is at $53.80 and $54.20 per troy ounce in today’s session.
On the MCX, Jain said gold has support at ₹1,27,100 and ₹1,26,600 and resistance is at ₹1,28,200 and ₹1,29,000, while silver has support at ₹1,64,400 and ₹1,63,500 and resistance at ₹1,67,700 and ₹1,70,000.
Aksha Kamboj, Vice President, India Bullion and Jewellers Association (IBJA) and Executive Chairperson, Aspect Global Ventures, said the demand for gold is going robust amidst the wedding season.
“Gold continues to be regarded as a safe and stable asset and will remain a viable long-term investment opportunity for those looking to hold onto their original purchase price over a longer period of time,” said Kamboj.
“Given the stability seen currently in the foreign exchange market, it appears that gold is providing both stability and a sense of security and therefore, gold would be a great choice for an investor interested in investing long-term instead of solely for immediate or short-term returns,” Kamboj said.
Rahul Kalantri, VP of commodities at Mehta Equities, said gold has support at $4,130 and $4,095, while resistance is at $4,205 and $4,235. Silver has support at $53.10 and $52.75, while resistance is at $53.95 and $54.40.
In INR, Kalantri said gold has support at ₹1,25,050 and ₹1,24,380, while resistance is at ₹1,26,550 and ₹1,27,100. Silver has support at ₹1,61,250 and ₹1,59,90,0 while resistance is at ₹1,63,410 and ₹1,64,300.
Read all market-related news here
Read more stories by Nishant Kumar
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.
