Gold price today: Rates rise ahead of RBI policy, US payrolls data; experts highlight key levels for MCX Gold
Gold price today: Gold rates rose in the domestic futures market on Friday, amid global market fluctuations. Investors' focus was on the RBI policy outcome and the US payroll data.
Gold price today: Gold rates climbed in the domestic futures market on Friday morning amid mixed global cues, with the focus centred on the RBI policy outcome and US payroll data. MCX Gold for February 5 expiry traded 0.29 per cent higher at ₹76,697 per 10 grams around 9:20 am.
RBI Governor Shaktikanta Das will announce the policy outcome at 10 am today. While there are feeble expectations of a cut in repo rates, market participants expect him to announce a 25 bps cut in CRR (cash reserve ratio) for banks. This move will inject liquidity into the system and boost the profitability of banks.
Track RBI monetary policy meeting LIVE updates here
In international markets, as Reuters reported, gold held steady but was headed for a second straight week of decline, with a focus on the US payrolls data due later in the day for cues on the US rate cut trajectory.
According to the CME Group's FedWatch Tool, markets see a 70 per cent chance of a 25 bps rate cut by the US Fed in December. The US central bank will announce its monetary policy on December 18. Apart from the interest rate decision, all eyes will be on Fed Chair Jerome Powell's comments about growth, inflation and the interest rate trajectory.
Meanwhile, Powell said on Wednesday that the US economy was stronger than it appeared in September when the central bank began cutting rates. This indicates that the Fed could be cautious about reducing rates in the near future.
Rate cuts are key triggers for gold. When rates are trimmed, the dollar and bond yields ease, and gold tends to gain.
Experts highlight key levels for MCX Gold
Rahul Kalantri, VP of commodities at Mehta Equities, underscored that gold has support at $2,615-2,600 and resistance at $2,642-2,657. Silver has support at 30.98-30.75 and resistance at $31.40-31.62.
In the Indian rupee, gold has support at ₹76,210- ₹76,000, while resistance at ₹76,670- ₹76,840. Silver has support at ₹92,000- ₹91,480, while resistance is at ₹92,950- ₹93,540, according to Kalantri.
Manoj Kumar Jain of Prithvifinmart Commodity Research said gold has support at $2,634-2,622, while resistance at $2,660-2,678 per troy ounce and silver has support at $31.30-31.00, while resistance is at $31.80-32.10 per troy ounce in today’s session.
On the MCX, Jain said, gold has support at ₹76,200- ₹75,950 and resistance at ₹76,700- ₹77,000, while silver has support at ₹91,750-91,100 and resistance at ₹93,000-93,600. Jain suggests avoiding gold and silver in today's session ahead of the US job reports.
According to Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, gold may trade within the range of ₹76,700– ₹77,400 on the MCX.
Anuj Gupta, the head of commodity and currency at HDFC Securities, believes the MCX gold rate may trade between ₹75,800 and ₹77,500 per 10 gm. "We can maintain a sell-on-rise strategy ahead of the US Fed meeting this month," said Gupta.
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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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