Gold prices Today: MCX Gold trades higher; what should be your strategy for yellow metal today?

Gold prices traded higher in the domestic futures market in Tuesday's morning session, tracking global cues, ahead of the US and India inflation data. Besides, the US Fed outcome, which is due on Wednesday, December 13, is also in focus.

According to Reuters, economists expect US headline inflation to be flat for November and core inflation to be steady at an annual pace of 4 per cent.

India's inflation is likely to come near 6 per cent for November because of a sharp jump in vegetable prices.

Also Read: India CPI inflation may breach RBI's 6% tolerance band in November, says Barclays

After the RBI's pause on interest rates, the US Fed is also expected to maintain a pause on Wednesday, December 13 even as inflation remains above its 2 per cent target and the job market remains resilient.

Also Read: US Fed meet this week: Cooling inflation, resilient jobs market - will Fed hold rates steady?

Reuters reported, quoting CME FedWatch Tool, that traders widely expect the Fed to leave rates unchanged at 5.25-5.50 per cent this week and are pricing in an about 77 per cent chance of a rate cut in May.

Gold prices tend to gain when interest rates come down. Apart from this, geopolitical factors and macroeconomic indicators also influence gold prices.

Meanwhile, MCX Gold traded 0.32 per cent higher at ₹61,315 per 10 grams around 11 am.

What should be your strategy for gold?

According to Rahul Kalantri, VP of Commodities at Mehta Equities, gold prices may remain volatile in today's session.

"Gold has support at $1,972-1,960, with resistance at $1,995-2,007. For silver, support is at $22.65-22.51, while resistance stands at $23.05-23.24," Kalantri said.

"In terms of the Indian rupees (INR), gold has support at ₹60,870-60,710, with resistance at ₹61,280 and ₹61,470. Silver has support at ₹71,350-70,680 and resistance at ₹72,570 and ₹73,030," said Kalantri.

Brokerage firm Motilal Oswal Financial Services expects MCX Gold to trade in a range for the session.

"Support for MCX Gold is at ₹61,100-60,900 whereas resistance is at ₹61,500-61,700. For MCX Silver, support is at ₹71,600-71,200 whereas resistance is at ₹72,700-73,300," said Motilal Oswal.

According to the estimates of SMC Global Securities, gold may trade in the range of ₹61,000-61,400, and silver may trade in the range of ₹71,500-72,100, with sideways to mixed bias.

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Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.