Gold price today: The rates of gold crashed by a per cent on the MCX on Monday (November 24) morning amid fading expectations of another US Fed rate cut in December and easing geopolitical tensions.
The firm dollar index also exerted pressure on gold prices. MCX Gold December futures traded 1.17 per cent lower at ₹1,22,740 per 10 grams at 10:30 am, while MCX Silver December futures were 0.76 per cent down at ₹1,52,979 per kg at that time.
Why are gold prices falling?
Gold prices lack a fresh positive trigger to sustain their gains. The dwindling prospects of a US Fed rate cut next week are one of the major factors behind the recent correction in gold prices.
The latest data from the US job market has poured cold water on the prospects of a 25 basis point rate cut by the US Federal Reserve next month.
As Reuters reported, a “US Labor Department report showed on Thursday that September nonfarm payrolls increased by 1,19,000, more than double the estimated increase of 50,000.”
The strong US job growth data shot up the dollar to a near six-month high on Friday. The dollar index hovered above the 100 mark, capping the gains for gold.
Another major factor behind the fall in gold prices is easing geopolitical tensions. According to a Hindustan Times (HT) report, US President Donald Trump’s proposal to halt Ukraine’s war with Russia is witnessing good progress.
HT quoted the head of Ukraine’s delegation Andriy Yermak, telling reporters the US and Ukrainian sides had made “very good progress”, and were “moving forward to the just and lasting peace the Ukrainian people deserve”.
Is it the right time to buy gold?
Several factors, including the rise in dollar index, the news flows on the Russia-Ukraine front, talks on US tariffs, and uncertainty about the Fed’s next policy move, indicate gold prices may remain volatile in the near term.
Some experts anticipate further corrections and suggest avoiding gold for some time.
“We expect more correction in the gold price. International gold prices may come to $3,900 while on the MCX, gold may retest ₹1,18,000 mark. So, this may not be the right time to buy gold,” said Anuj Gupta, A SEBI-registered analyst.
Some experts suggest buying silver instead.
“We expect gold and silver prices to remain volatile this week amid volatility in the dollar index, in the global financial markets and ahead of the meeting for the Russian-Ukrainian peace deal. We suggest buying silver around the ₹1,53,000 and ₹1,51,500 range with a stop loss below ₹1,50,000 for the targets of ₹1,55,500 and ₹1,57,000,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.
According to Jain, gold has support at $4,034 and $4,000, while resistance is at $4,110 and $4,140 per troy ounce, and silver has support at $49.40 and $48.80, while resistance is at $50.50 and $51.10 per troy ounce in today’s session.
On the MCX, gold has support at ₹1,23,300 and ₹1,22,500 and resistance is at ₹1,24,750 and ₹1,25,500, while silver has support at ₹1,53,000 and ₹1,51,500 and resistance is at ₹1,55,500 and ₹1,57,000, said Jain.
Rahul Kalantri, VP Commodities at Mehta Equities, said gold has support at $4,022 and $3,990 while resistance is at $4,185 and $4,110. Silver has support at $49.50 and $49.20, while resistance is at $50.35 and $50.70.
In INR, Kalantri said gold has support at ₹1,23,450 and ₹1,22,480 while resistance is at ₹1,24,750 and ₹1,25,500. Silver has support at ₹1,53,050 and ₹1,52,350, while resistance is at ₹1,55,140 and ₹1,55,980.