Gold rate today: MCX gold price falls below ₹1.19 lakh after US Fed rate cut; silver prices declines over 1%

Gold prices on Multi Commodity Exchange of India (MCX) opened sharply lower on Thursday, after the US Federal Reserve policy announcement. Silver prices also declined more than a percent.

MCX gold rate opened 1.27% lower at ₹1,19,125 per 10 grams as against its previous close of ₹1,20,666. MCX silver price opened 0.4% lower at ₹1,45,498 per kg as compared to its previous close of ₹1,46,081 level.

At 9:20 AM, MCX gold price was trading lower by ₹1,827, or 1.51%, at ₹1,18,839 per 10 grams, while MCX silver rate was down by ₹1,411, or 0.97%, at ₹1,44,670 per kg.

In the global markets, gold prices inched higher, supported by a slight pullback in the dollar, while investors waited to see if US President Donald Trump and his Chinese counterpart Xi Jinping would thrash out a trade deal.

Spot gold price rose 0.2% to $3,937.88 per ounce, while US gold futures for December delivery slipped 1.2% to $3,950.70 per ounce.

The dollar index fell 0.2% after hitting a two-week high against its rivals in the previous session, making gold less expensive for other currency holders.

The US Federal Reserve cut interest rates by 25 bps on Wednesday, its second rate cut this year, bringing the benchmark overnight rate to a target range of 3.75% – 4.00%.

Fed Chair Jerome Powell said officials are struggling to reach a consensus about what lies ahead for monetary policy and that financial markets should not assume another rate cut will happen at the end of the year.

“Gold prices held onto most of its recent losses and remained close to a three-week low as traders scaled back bets on further US rate cuts. Markets now assign less than a 70% chance of another rate cut this year, down from near-full expectations before the FOMC decision. Meanwhile, investors are watching US-China trade talks, where Trump and Xi are expected to finalize a trade deal, signaling a pause in the prolonged trade dispute and reducing demand for safe-haven assets,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities.

However, gold prices remained on track for a monthly gain and was up about 50% for the year.

Gold Price Outlook

According to Trivedi, MCX gold price for December expiry, in tandem with the international markets, may continue with the weak momentum and ₹119,500 per 10 grams is support for the intraday.

Rahul Kalantri, VP Commodities, Mehta Equities Ltd. said that gold prices have support at $3,900 - $3,860, while resistance at $3,995 - $4,040. Silver price has support at $46.80 - $46.15, and resistance at $48.15 - $48.80.

“MCX gold price has support at ₹1,20,070 - ₹1,19,480 while resistance at ₹1,21,450 - ₹1,22,100. MCX silver price has support at ₹1,44,950 - ₹1,43,750, while resistance at ₹1,47,240 - ₹1,48,180,” said Kalantri.

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