Gold prices on the Multi-Commodity Exchange of India (MCX) declined on Friday, following weakness in international prices. The primary driver was falling expectations of an interest rate cut by the US Federal Reserve. Signs of easing global geopolitical tensions also contributed. Silver prices slipped more than 1%.
MCX gold rate opened 0.28% lower at ₹1,22,373 per 10 grams (previous close: ₹1,22,727). MCX silver prices opened 0.26% lower at ₹1,53,750 per kg (previous close: ₹1,54,151).
At 9:10 AM, the MCX gold price was trading lower by ₹285, or 0.23%, at ₹1,22,442 per 10 grams. MCX silver rate was at ₹1,52,433 per kg, down by ₹1,718, or 1.11%.
In the global markets, gold prices fell as a stronger-than-expected US jobs report reinforced expectations that the Federal Reserve will refrain from cutting interest rates at its December meeting.
Spot gold price fell 0.1% to $4,072.87 per ounce, while US gold futures for December delivery gained 0.3% to $4,071.90 per ounce. Spot silver price slipped 0.5% to $50.35 per ounce.
The US dollar was on track for its strongest week in more than a month. A stronger dollar makes gold priced in greenbacks more expensive for holders of other currencies.
“Gold prices fell in the international markets, heading for a modest weekly decline as expectations of a December Federal Reserve rate cut waned following the jobs report. The data reinforces the Fed’s October assessment of a labor market that is cooling but remains steady. Several Fed officials have also expressed caution about rate cuts,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities.
The US Labour Department report showed that September nonfarm payrolls increased by 119,000, more than double the estimated increase of 50,000. Meanwhile, the unemployment rate rose to 4.4%, the highest since October 2021, above the expected 4.3%, while wage growth came in slightly higher than anticipated at 3.8%.
Traders now see nearly a 39% chance for a Fed rate cut next month.
Gold Price Outlook
According to Trivedi, the MCX gold price for the December expiry is likely to drop to ₹1,22,000 - ₹1,21,800 per 10 grams.
Rahul Kalantri, VP Commodities, Mehta Equities Ltd., stated that the gold price has support at $4,032-$4,000, while resistance is at $4,110-$4,140. Silver prices have support at $50.10-$49.65 and resistance at $51.20-$51.50.
“MCX gold price has support at ₹1,22,050 - ₹1,21,480, while resistance is at ₹1,23,050 - ₹1,23,700. Silver price has support at ₹1,53,050 - ₹1,52,350, while resistance at ₹1,55,140 - ₹1,55,980,” said Kalantri.
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