Gold, silver prices dip on MCX ahead of US Fed meeting
During early trade, MCX Gold December futures were down 0.36 per cent at Rs 1,25,480 per 10 grams, while MCX Silver December contracts slipped 0.20 per cent to Rs 1,60,950 per kg.
Mumbai: Gold and silver prices fell in early trade on the MCX on Thursday as traders booked profits after the recent rally.
The decline came even as investors continued to watch for signals from the US Federal Reserve ahead of its monetary policy meeting next month.
During early trade, MCX Gold December futures were down 0.36 per cent at Rs 1,25,480 per 10 grams, while MCX Silver December contracts slipped 0.20 per cent to Rs 1,60,950 per kg.
Gold has support at $4130-4095 while resistance at $4195-4225. Silver has support at $52.65-52.35 while resistance is at $53.65-53.90, as per analysts.
“In INR gold has support at Rs1,25,350-1,24,780 while resistance at Rs1,26,650-1,27,100. Silver has support at Rs1,60,350-1,59,600 while resistance at Rs1,62,110, 1,63,000,” experts added.
Follow for more details: munsifdaily.com
The US Federal Open Market Committee is scheduled to meet on December 9–10 to decide the next policy move.
The meeting comes at a time when the US job market appears to be weakening and inflation remains stubborn.
Recent economic data has increased expectations of a possible rate cut in December.
US retail sales grew at a slower pace than expected in September, rising 0.2 per cent compared to a 0.6 per cent increase in August.
Consumer confidence in the US also fell to its lowest level since April. The Producer Price Index rose 0.3 per cent in September, matching forecasts.
Also Read: Delhi-NCR’s cold intensifies, AQI again nears ‘severe’ in several areas
A weaker US dollar helped limit the fall in gold prices. The dollar index slipped 0.10 per cent, making gold cheaper for buyers holding other currencies and supporting demand.
Experts believe gold prices may continue to fluctuate due to movements in the US dollar and ahead of important economic data expected from Europe.
“Gold and silver prices moved higher as markets priced in a higher probability of a Federal Reserve rate cut in the December policy meeting,” analysts said.
“This sentiment was supported by a mixed set of U.S. economic indicators and dovish commentary from Fed Governors,” they added.
