Gold, Silver fall ahead of US CPI data; analysts outline 2026 outlook - Check key support levels
Gold and silver prices dipped in early trade on December 18 as traders booked profits at record highs amid a firm US dollar and caution ahead of the US CPI data. Despite the pullback, global cues and expert commentary suggest the broader uptrend in precious metals remains intact.
Gold Slips on MCX in Early Trade: MCX gold February futures were down 0.20% at ₹1,34,619 per 10 grams around 9:20 am on Thursday. The decline came after Wednesday’s 0.36% gain, when gold closed at ₹1,34,894. The mild pullback was largely driven by profit booking and a slightly stronger US dollar.
WGC Sees Gold Potentially Touching $6,000 in 2026: World Gold Council CEO David Tait said gold’s long rally shows “little signs of slowing,” forecasting it could approach $6,000 per ounce (about ₹541,920 per ounce or ₹1.90 lakh per 10 grams) by 2026. He said: “There are strong indicators for continued high gold prices in 2026… $6,000 feels very close given the prevailing conditions.”
Key Global Support and Resistance Levels: Manoj Kumar Jain of Prithvifinmart said gold and silver remain volatile ahead of the BOJ meeting but may hold key support levels of $4,140 and $57.20 per troy ounce. He added that gold faces support at $4,340 and $4,300 and resistance at $4,400 and $4,440. Silver’s support lies at $65.00 and $63.60, with resistance at $68.20 and $70.00.
Rupee Moves Add Pressure to Domestic Gold Prices: Jateen Trivedi of LKP Securities said gold opened near ₹1,35,200 before dropping sharply to ₹1,33,500 as the rupee strengthened on likely RBI intervention. He added: “With a data-heavy week ahead in the US—gold is expected to remain highly volatile, with a broad trading range of ₹1,31,000– ₹1,36,000 in the near term.”
Traders Await US CPI and PCE Data: Investors are watching the US CPI print due today and the PCE data on Friday. These inflation indicators will help shape expectations around the Federal Reserve’s policy outlook. Precious metals tend to gain when rate-cut expectations strengthen.
Silver Retreats After Record High: Meanwhile, MCX silver March futures fell 0.47% to ₹2,06,451 per kg. This comes a day after silver hit a record high of ₹2,07,833 and closed 4.9% higher at ₹2,07,435. The metal continues to trade near lifetime highs despite Thursday’s correction.