Gold price today: Rates drop on MCX on profit booking; is it the right time to buy gold?

Gold price today: The rates of gold and silver traded lower on the MCX in morning trade on Tuesday, December 16, due to profit booking amid softer spot demand and lack of fresh triggers. MCX gold February futures were 0.48% down at ₹1,33,492 per 10 grams around 9:10 am, while MCX silver March contracts were 1.64% down at ₹1,94,657 per kg at that time.

However, international gold prices were trading near a record high of around $4,300 per troy ounce as the US dollar dropped to near a two-month low.

Investors now await the US nonfarm payrolls report later in the day for more clues on the Federal Reserve’s monetary policy outlook.

As per CME's FedWatch tool, markets are pricing in a 76% chance of a 25-basis-point rate cut in January.

Experts expect gold and silver prices to remain volatile this week, reacting to U.S. macroeconomic data, which will shape expectations about the U.S. Federal Reserve's policy moves. The policy meetings of the Bank of England (BoE) and the Bank of Japan (BOJ), as well as news flows on the Russia-Ukraine war, will also be in focus.

On Monday, MCX gold February 5 contracts hit a record high of ₹1,35,496 but closed 0.33% up at ₹1,34,061, while MCX silver March 5 expiry ended 2.7% higher at ₹1,98,049 per kg.

Is it the right time to buy gold?

Experts believe gold's medium-term outlook remains bright due to rate cut hopes and global uncertainties. They suggest buying the yellow metal on dips.

"We suggest buying gold on dips around ₹1,33,600 with a stop loss of ₹1,32,800 for the target of ₹1,35,000 and wait for some corrective dips in silver for initiating fresh long positions," said Manoj Kumar Jain of Prithvifinmart Commodity Research.

Experts say traders should keep the key support and resistance levels in mind before making their moves.

According to Jain, MCX gold has support at ₹1,33,500 and ₹1,32,800 and resistance is at ₹1,34,850 and ₹1,35,500, while silver has support at ₹1,96,200 and ₹1,94,400 and resistance is at ₹2,00,000 and ₹2,01,400.

Jigar Trivedi, Senior Research Analyst at Reliance Securities, said MCX gold February futures may weaken during the intraday today to ₹1,33,000 per 10 grams.

Rahul Kalantri, VP of commodities at Mehta Equities, sees support for gold at ₹1,33,250 and ₹1,32,450, while resistance is at ₹1,34,950 and ₹1,35,670. Silver has support at ₹1,96,450 and ₹1,95,280, while resistance is at ₹1,99,810 and ₹2,01,270.

Aksha Kamboj, Vice President at the India Bullion and Jewellers Association (IBJA) and Executive Chairperson of Aspect Global Ventures, underscored that gold remains at record highs, remaining firm in the face of global uncertainty and a desire for monetary easing that underpins demand for the safe-haven metal.

"The sentiment remains positive, but a degree of caution is entering the market as investors attempt to gauge how far this latest surge can continue. Investors may prefer measured exposure at these levels, adding only on brief pullbacks. In the near term, gold is likely to stay supported, with sentiment closely tied to global economic and policy cues," said Kamboj.

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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.