Gold price today: Rates fall as dollar tops 100 mark, Fed minutes damp rate cut hopes
Gold price today: Gold rates traded slightly lower on the MCX in early trade on Thursday, November 20, as the dollar index rose above the 100 mark and the minutes of the US Federal Reserve dampened hopes of another rate cut in December.
MCX Gold December futures traded 0.23% down at ₹1,22,768 per 10 grams around 9:15 am. MCX Silver was, however, 0.39% up at ₹1,55,717 per kg at that time.
The dollar index rose to 100.30, reaching an over two-week high, and weighed on gold demand. Because gold is backed by US dollars, any rise in the greenback’s value increases the cost of gold for holders of other currencies.
Meanwhile, diminishing expectations of a US Fed rate cut also exerted pressure on gold prices. The minutes from the Fed’s October meeting, released on Wednesday, hinted that policymakers were cautious about the risk of further rate cuts raising inflation.
According to the CME Group’s FedWatch tool, the market now sees a 33% chance of a rate cut at the Fed’s December 9-10 meeting, down from 49% on Wednesday.
Rahul Kalantri, VP of commodities at Mehta Equities, noted that precious metals pared gains from their session peaks due to the strength of the US dollar and a lack of consensus among Federal Reserve officials regarding a potential December rate cut.
“The FOMC minutes highlighted rising concerns over the US employment outlook alongside lingering inflation pressures, resulting in mixed views on future policy action. Nonetheless, geopolitical and economic uncertainties continue to bolster safe-haven buying,” said Kalantri.
Gold and silver: Experts highlight key levels
According to Kalantri, gold has support at $4,035 and $4,000 while resistance is at $4,115 and $4,140. Silver has support at $51.10 and $50.65, while resistance is at $52 and $52.30.
In INR, Kalantri said gold has support at ₹1,22,350 and ₹1,21,680 while resistance is at ₹1,23,650 and ₹1,24,200. Silver has support at ₹1,53,850 and ₹1,52,500, while resistance is at ₹1,56,440 and ₹1,57,580.
Manoj Kumar Jain of Prithvifinmart Commodity Research said gold has support at $4,054 and $4,034, while resistance is at $4,110 and $4,140 per troy ounce, and silver has support at $50.35 and $49.80, while resistance is at $51.40 and $52 per troy ounce in today’s session.
On the MCX, Jain said gold has support at ₹1,22,200 and ₹1,21,650 and resistance is at ₹1,23,800 and ₹1,24,400, while silver has support at ₹1,54,000 and ₹1,52,500 and resistance at ₹1,56,600 and ₹1,58,000.
“We suggest buying gold on dips around ₹1,22,800 and ₹1,22,000 with a stop loss of ₹1,21,400 for the target of ₹1,24,400 and buying silver around ₹1,54,000 and ₹1,52,500 with a stop loss below ₹1,51,500 for the targets of ₹1,56,500 and ₹1,57,750,” said Jain.
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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.
