Gold Prices Decline on Domestic Futures Market

The price of yellow metal took a hit despite positive global cues surrounding US inflation print, which came within the expected threshold.

However, the price of gold surged in the overseas market for the fifth consecutive session, reaching a two-week high, Reuters reported. At 9:15 am, MCX Gold for February 5 expiry declined by 0.25% at ₹78,804 per 10 grams.

US CPI rose marginally to 2.7% in November up from 2.6% in October. While the inflation numbers came within the expected lines, it surged during the second consecutive month, clocking steepest gains in seven months on account of a surge in food prices. The market is keeping a close eye on US Producer Price Index (PPI) data, which is set to be released later today.

Notably, Market experts are keeping a cautious approach ahead of the US Federal Open Market Committee (FOMC) meeting on December 17-18. Experts believe that Jerome Powell-led FOMC is set to slash interest rates by 25 bps.

What do experts say?

Manoj Kumar Jain of Prithvifinmart Commodity Research opined of buying the yellow metal on dips at around ₹78,750 by setting a stop loss of ₹78,440. He also suggested buying silver at around ₹95,200 by keeping a stop loss of ₹94,400 with a target price of ₹96,800.

He said, “Gold has support at $2,734-2,722, while resistance at $2,782-2,804 per troy ounce and silver has support at $32.66-32.40, while resistance is at $33.30-33.64 per troy ounce in today’s session. On the MCX, gold has support at ₹78,770-78,480 and resistance at ₹79,330-79,650, while silver has support at ₹95,150-94,400 and resistance at ₹96,650-97,350.”

Geopolitical tensions, central bank purchases, and discussions of Chinese stimulus are bolstering the position of gold, noted Rahul Kalantri, VP of commodities at Mehta Equities.

He said, “Gold has support between $2,688 and $2,670, with resistance between $2,722 and $2,738. Silver has support at $31.65-$31.47 and resistance at $32.20-$32.40. In INR terms, gold is supported between ₹78,780 and ₹78,540, with resistance between ₹79,290 and ₹79,500. Silver finds support at ₹95,050- ₹94,480, with resistance between ₹96,450 and ₹96,940.”