Gold price today: Rates rise on MCX on dollar's weakness, US Fed rate cut hopes; experts highlight key levels to watch

Gold price today: The rates of gold and silver climbed in the domestic futures market on Wednesday morning (November 12), supported by the dollar's softness and growing expectations of a rate cut by the US Federal Reserve in December. MCX gold December futures traded 0.34 per cent higher at ₹124333 per 10 grams around 9:05 am, while MCX silver December contracts were up 0.51 per cent at ₹1,55,480 per kg at that time.

International gold prices gained for a fourth consecutive session amid expectations that the flow of economic data after the reopening of the US government will support views for a US Fed rate cut in December.

The dollar index hit an intraday low of 99.46, which is positive for gold as the yellow metal becomes cheaper in overseas currencies when the greenback softens.

Meanwhile, the US government shutdown, which started on October 1 and is the longest in history, may soon end as the Senate passed legislation on Monday to reopen the government. The federal shutdown has halted salaries of thousands of federal workers, disrupted food benefits for millions of Americans and put travellers in a fix.

Expectations of another US Fed rate cut next month are supporting gold prices following weak job market and consumer sentiment data.

As Reuters reported, ADP data showed that US firms were shedding more than 11,000 jobs a week through late October.

According to CME Group's FedWatch tool, markets are pricing in a 68 per cent probability of a 25 basis points US Fed rate cut next month, up from 64 per cent in the previous session

Meanwhile, Reuters reported Fed Governor Stephen Miran saying on Monday that a 50 basis points rate cut in December would be appropriate as inflation is falling while the unemployment rate is rising.

"Gold and silver continue to trade with strong swings. Early buying pushed prices higher, but profit-booking erased those gains. Gold eased from its recent 3-week high as optimism grew about the end of the U.S. shutdown and equity markets bounced back, reducing safe-haven demand. Still, both metals hold comfortably above their support levels," Rahul Kalantri, VP-Commodities, Mehta Equities, observed.

Gold and silver: Key levels to watch

According to Kalantri, gold has support at $4,070 and $4,030, while resistance is at $4,145 and $4,165. Silver has support at $50.70 and $50.15, while resistance is at $51.65 and $52.

In INR, gold has support at ₹1,23,450 and ₹1,22,880, while resistance is at ₹1,24,850 and ₹1,25,400. Silver has support at ₹1,53,850 and ₹1,52,900, while resistance is at ₹1,55,940 and ₹1,56,880, Kalantri said.

Manoj Kumar Jain of Prithvifinmart Commodity Research said gold has support at $4,084 and $4,050, while resistance is at $4,154 and $4,180 per troy ounce. Silver has support at $50.20 and $49.74, while resistance is at $51.10 and $51.65 per troy ounce in today’s session.

On the MCX, as per Jain, gold has support at ₹1,22,800 and ₹1,22,000 and resistance is at ₹1,24,750 and ₹1,25,800, while silver has support at ₹1,53,200 and ₹1,52,000 and resistance is at ₹1,56,000 and ₹1,57,700.

"We suggest buying gold on dips around ₹1,23,300 with a stop loss of ₹1,22,500 for the target of ₹1,25,000 and also suggest buying silver around ₹1,53,800 and ₹1,53,000 with a stop loss of ₹1,51,800 for the target of ₹1,55,000 and ₹1,56,600," said Jain.

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