Gold rates rise, silver hits record high on MCX after US Fed cuts rates by 25 bps; experts highlight key levels to watch

Gold rate today: Gold prices climbed more than half a per cent while silver jumped to its fresh record high on the MCX in morning deals on Thursday, December 11, after the US Federal Reserve cut rates by 25 basis points and signalled one more rate cut next year. MCX gold February contracts were 0.60% up at ₹1,30,575 per 10 grams around 9:45 am, while MCX silver March contracts were 2.42% up at ₹1,93,300 per kg at that time after hitting a record high of ₹1,93,452 per kg.

International gold prices also saw positive momentum, with US gold futures for February gaining more than 1% to $4,271.30 per ounce, while silver jumped to another record high after the US Fed cut interest rates.

The US Federal Open Market Committee (FOMC) cut benchmark interest rates for the third consecutive time on December 10, which brought the federal funds rate to its lowest level since 2022 in the range of 3.50%–3.75%. Overall, the Fed has lowered the federal funds rate by 0.75 percentage points this year.

Gold prices tend to gain in low-interest-rate environments as the yellow metal is a non-yielding asset.

The focus now is on the US job and CPI inflation data for November and the PCE Price Index for October, scheduled for next week. These data will influence the expectations about the interest rate path of the US Fed.

Meanwhile, the dollar index declined by 0.25% after the US Fed's policy decision, supporting gold prices.

Ross Maxwell, Global Strategy Operations Lead at VT Markets, underscored that increased policy uncertainty about the interest rate trajectory, inflation trends, and broader economic conditions generally puts downward pressure on the US dollar, as markets reassess growth and yield prospects.

"A softer dollar, combined with lower interest rates, supports gold and silver by reducing the opportunity cost of holding non-yielding assets. Investors tend to look toward safe-haven assets, strengthening demand for precious metals. Silver benefits from this dynamic as well, though its industrial exposure adds an additional layer of volatility and upside potential," said Maxwell.

Gold and silver: Experts highlight key levels to watch

According to Manoj Kumar Jain of Prithvifinmart Commodity Research, gold has support at $4,200 and $4,164, while resistance is at $4,258 and $4,300 per troy ounce, and silver has support at $60.40 and $59.80, while resistance is at $62.20 and $63.50 per troy ounce in today’s session.

On the MCX, Jain stated that gold has support at ₹1,29,100 and ₹1,28,500, and resistance at ₹1,30,660 and ₹1,31,200. Meanwhile, silver has support at ₹1,86,500 and ₹1,84,000, and resistance at ₹1,92,000 and ₹1,94,000.

"We maintain our bullish view on both precious metals and are targeting gold for ₹1,35,000 and silver for ₹2,00,000 in the short term post Fed meeting outcomes," said Jain.

Rahul Kalantri, VP of commodities at Mehta Equities, finds support for gold at $4,175 and $4,145, while resistance is at $4,255 and $4,275. Silver has support at $61.50 and $60.85, while resistance is at $62.95 and $63.45.

In INR, Kalantri said gold has support at ₹1,29,050 and ₹1,28,450, while resistance is at ₹1,30,550 and ₹1,31,300. Silver has support at ₹1,86,750 and ₹1,85,200, while resistance is at ₹1,89,810 and ₹1,90,670.

Experts at brokerage firm Motilal Oswal see support for MCX gold at ₹1,30,000, followed by ₹1,29,650, while resistance is at ₹1,30,720, followed by ₹1,31,050.

For MCX silver, Motilal Oswal sees support at ₹1,91,600 and ₹1,90,500, while the brokerage firm finds resistance at ₹1,93,300 and ₹1,94,100.

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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.