Gold Rates Today: MCX gold drops nearly ₹1,000 per 10g as US dollar strengthens, but poised for weekly gain

Gold prices remained lower for the second straight day on Friday, December 19, pressured by the rising US dollar, making dollar-priced gold more expensive for other currency holders. However, the bullion is on track to close the week higher, as the latest US economic data boosted bets on US Federal Reserve interest rate cuts.

After closing 0.30% lower, the February futures contract on MCX opened further lower at ₹1,34,031 per 10 grams, compared to the previous close of ₹1,34,521, and further slipped to reach the day’s low of ₹1,33,555, a drop of ₹966 from Thursday’s close.

For the week, the yellow metal is up by 0.13%, and if it closes higher, it will mark its sixth straight week of gains.

Meanwhile, spot gold prices also slipped 0.53% to the day’s low of $4,327 per ounce but recovered to trade 0.05% lower at $4,329 as of 8:00 PM.

In contrast, silver prices staged a sharp recovery from Thursday’s drop of nearly ₹4,000 per kilo. The March silver futures contract on MCX opened the Friday's session higher at ₹2,02,899 per kilo and held momentum to reach an intraday high of ₹2,06,280, a ₹3,390 increase.

The US dollar index, which measures the currency against six major peers, rose to over a one-week high of 98.74, putting it on track for its first weekly gain in three weeks.

The November US consumer prices increased less than expected at 2.7% compared to the same month a year ago. The year-over-year price growth in November reflects a notable slowdown from the 3% surge in September.

The tamer-than-expected inflation data has renewed confidence that the Federal Reserve will continue cutting interest rates next year. Traders now see a 58% chance of a dovish policy move by the Fed in March, according to CME’s FedWatch Tool.

Goldman Sachs expects gold prices to reach $4900 by 2026-end

In a more bullish outlook, global brokerage firm Goldman Sachs expects gold prices to continue their record run, estimating that prices could rise another 14% from current levels to potentially reach $4,900 per ounce by December 2026 in its base case.

This, the brokerage said in a note on Thursday, is supported by structurally high central bank demand and cyclical support from Fed interest rate cuts.

Technical Outlook: Gold expected to trade in ₹1.31–1.34 lakh range, say analysts

Jateen Trivedi, VP and Research Analyst for Commodity and Currency at LKP Securities, said, “The stronger currency continues to offset global firmness in bullion. Market focus is now on U.S. existing home sales and the Core PCE price index later in the evening, which could provide fresh direction to prices. In the near term, gold is expected to remain volatile within a range of ₹1,31,500– ₹1,34,000.”

Rahul Kalantri, VP of Commodities at Mehta Equities, noted that gold has support at ₹1,33,850– ₹1,33,110, while resistance is at ₹1,35,350– ₹1,35,970. For silver, he said the metal has support at ₹2,02,450– ₹2,00,280 and resistance at ₹2,05,810– ₹2,07,270.

Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.