Today's gold price: At 9:15 am, MCX Gold December futures were 1% higher at ₹1,25,106 per 10 grams. At ₹1,56,551 per kg, MCX Silver December contracts were up 1.34%.
Gold price today: Due to strong spot demand brought on by the ongoing wedding season and rising expectations of a rate cut by the US Federal Reserve in December, gold rates increased by more than 1% in early deals on the MCX on Tuesday, November 25. At 9:15 am, MCX Gold December futures were 1% higher at ₹1,25,106 per 10 grams. At ₹1,56,551 per kg, MCX Silver December contracts were up 1.34%.
The previous session saw an almost 2% increase in international gold prices as investors turned to safe-haven assets due to expectations of a US Fed rate decrease.
According to Reuters, New York Fed President John Williams stated on Friday that interest rates in the US would soon be lowered. He thinks cutting rates will help preserve jobs and won't harm the Fed's battle against inflation.
Market participants are now pricing in an 81% possibility of a Fed rate drop in December, up from 40% last week, according to the CME FedWatch Tool.
In a climate with low interest rates, gold prices typically increase because the precious metal does not generate income or interest. Therefore, gold attracts more investors when interest rates are low and other investments yield lower returns.
Due to the US government shutdown, a plethora of economic data, such as US retail sales, unemployment claims, and producer pricing numbers, are currently the main emphasis.
"Gold continues to be a solid portfolio anchor in the current market environment, notwithstanding a slight price increase from the previous week in India. According to Aksha Kamboj, Vice President of the India Bullion and Jewellers Association (IBJA) and Executive Chairperson of Aspect Global Ventures, "this price increase has been driven by ongoing wedding-season jewellery demand as well as its established role as an inflation hedge and a hedge against currency risk."
"The local fundamentals appear favorable, but broader global cues, such as a strong US currency and monetary adjustments in various central bank approaches, should be expected to dampen small upsides. Investors are purchasing gold for long-term preservation of actual wealth in addition to its aesthetic appeal, according to Kamboj.
Experts point out important levels to keep an eye on in gold and silver
Gold has support between $4,100 and $4,065 and resistance at $4,170 and $4,195, according to Rahul Kalantri, VP-Commodities, Mehta Equities. Resistance for silver is around $51.70 and $52.10, while support is at $51 and $50.65.
Gold has support between ₹1,23,150 and ₹1,22,580 in INR, while resistance is at ₹1,24,650 and ₹1,25,200, according to Kalantri. Silver has resistance at ₹1,56,140 and ₹1,57,000 and support at ₹1,53,650 and ₹1,52,800.
According to Manoj Kumar Jain of Prithvifinmart Commodity Research, silver has support at $50.60 and $50.15 and resistance at $51.50 and $52 per troy ounce in today's session, while gold has support at $4,134 and $4,010 and resistance at $4,200 and $4,240 per troy ounce.
According to Jain, silver has support at ₹1,53,100 and ₹1,52,000 and resistance at ₹1,56,600 and ₹1,58,000 on the MCX, while gold has support at ₹1,24,700 and ₹1,24,100 and resistance at ₹1,26,200 and ₹1,27,000.
"We suggest waiting for some corrective dips for initiating fresh long positions in gold and silver," Jain stated.
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