Gold price today: MCX Gold declines on strong US data, elevated bond yields. What should you do?
Gold price today: On Wednesday, gold rates dropped in the domestic market on profit booking amid a stronger dollar and elevated bond yields. MCX Gold for February 5 expiry was down 0.12% at ₹77,438 per 10 grams in the early deals.
Gold price today: Gold rates declined in the domestic futures market on Wednesday morning due to profit booking amid rising dollar and elevated US bond yields after strong macro data indicated that the world's largest economy remains strong. This suggests that the path for US Federal Reserve rate cuts could be narrower this year. MCX Gold for February 5 expiry traded 0.12 per cent lower at ₹77,438 per 10 grams around 9:05 AM.
Gold prices were also lacklustre in international markets, as the US dollar rose and 10-year treasury yields hit an eight-month high.
As Reuters reported, US job openings in November grew to 8.098 million, exceeding forecasts for a 7.7 million rise and exceeding October's 7.839 million number.
The focus now is on the ADP employment numbers and the minutes from the Fed's December meeting, which are due later in the day. Moreover, the US jobs report on Friday will significantly influence expectations about the US Federal Reserve's interest rate trajectory.
The yellow metal is witnessing some profit booking after it gained about half a per cent in the previous session. Due to geopolitical uncertainty and central bank buying, experts are largely positive about gold's prospects for the medium to long term.
According to Reuters, official data from the People's Bank of China (PBOC) showed on Tuesday that China bought the yellow metal for a second straight month in December.
What should you do?
Manoj Kumar Jain of Prithvifinmart Commodity Research suggests waiting for some corrective dips to initiate fresh long positions in gold and silver.
Jain expects gold and silver prices to remain volatile this week amid volatility in the dollar index ahead of the US job data.
"Gold has support at $2,650-2,634, while resistance at $2,680-2,694 per troy ounce and silver has support at $30.45-30.20, while resistance is at $30.88-31.20 per troy ounce in today’s session. MCX Gold has support at ₹77,220-77,000 and resistance at ₹77,800-78,000, while silver has support at ₹90,150-89,500 and resistance at ₹91,650-92,400," said Jain.
According to Rahul Kalantri, VP of commodities at Mehta Equities, gold has support at $2,632-2,617 and resistance at $2,662-2,678. Silver has support at $29.80-29.60, and resistance is at $30.24-30.42. In INR terms, gold has support at ₹77,320-77,150, while resistance is at ₹77,770-77,920. Silver has support at ₹90,210-89,570 while resistance at ₹91,450-91,980.
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Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.
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