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

Gold price today: The rates of gold and silver declined in the domestic futures market on Tuesday morning (November 4), as investors booked profits tracking gains in the US dollar amid fading hopes of further rate cuts by the US Federal Reserve this year. MCX Gold December futures were 0.42 per cent down at ₹1,20,894 per 10 grams at 9:10 am. MCX Silver December contracts were 0.48 per cent lower at ₹1,47,050 per kg at that time.

The dollar index rose by about 0.20 per cent to 100.05, its highest level in over three months, as expectations of another US Fed rate cut this year lose steam.

Gold is priced in the US dollar. A stronger US currency makes the yellow metal expensive in other currencies, weighing on its demand.

Weakening expectations of another Fed rate cut in December are supporting the US dollar. The US Fed in October cut interest rates by 25 basis points for the second time this year, but Chair Jerome Powell indicated there may not be another cut this year, dealing a blow to market expectations.

Reuters reported, quoting CME's FedWatch Tool, "market participants now see a 65 per cent chance that the Fed will cut rates again in December, down from over 90 per cent before Powell's remarks."

The focus now is on the ADP US employment data due on Wednesday and jobless claims on Thursday.

Gold: Key levels to watch

According to Manoj Kumar Jain of Prithvifinmart Commodity Research, gold has support at $3,984 and $3,955, while resistance is at $4,040 and $4,074 per troy ounce. Silver has support at $47.70 and $47.30, while resistance is at $48.40 and $48.84 per troy ounce in today’s session.

MCX Gold has support at ₹1,20,800 and ₹1,20,120 and resistance is at ₹1,22,000 and ₹1,22,750, while silver has support at ₹1,46,600 and ₹1,45,800 and resistance is at ₹1,48,800 and ₹1,49,500, said Jain.

"We suggest buying gold on dips around ₹1,20,650 with a stop loss of ₹1,19,900 for the target of ₹1,22,000," said Jain.

Jigar Trivedi, Senior Research Analyst at Reliance Securities, said the MCX Gold December may slip to ₹1,20,500 per 10 grams, with resistance seen around ₹1,21,400 per 10 grams.

According to Rahul Kalantri, VP of commodities at Mehta Equities, gold has support at $3,950 and $3,920 while resistance is at $4,035 and $4,065. Silver has support at $47.20 and $47.85, while resistance is at $48.30 and $48.70.

In INR, gold has support at ₹1,20,870 and ₹1,20,480, while resistance is at ₹1,21,890 and ₹1,22,300. Silver has support at ₹1,46,450 and ₹1,45,750 while resistance is at ₹1,48,340 and ₹1,49,280, said Kalantri.

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