Gold & Silver Price Today: Gold and silver prices moved higher on Wednesday as expectations strengthened for a possible US Federal Reserve rate cut in the December policy meeting. A sharp decline in the US dollar index and softer US bond yields further supported precious metals, though overall market sentiment remained volatile.
In global markets, gold February futures closed at $4,202.30 per troy ounce, up 0.91 per cent, while silver December futures ended at $52.916 per troy ounce, gaining 3.58 per cent.
Domestic prices followed a similar trend. On the MCX, gold February futures settled at Rs 1,27,771 per 10 grams, rising 0.61 per cent, and silver March futures closed at Rs 1,64,945 per kilogram, up 3.08 per cent.
Fed Rate Cut Expectations Boost Precious Metals
The rally was driven by growing confidence that the Federal Reserve may shift toward lower interest rates. Mixed US economic data and dovish remarks from Fed officials added to the sentiment.
Explaining the sharp upmove, Manoj Kumar Jain said, “Gold and silver gained amid firm possibilities of Fed rate cuts in the December policy meetings and profit taking in the dollar index.”
The US dollar index fell sharply, and the 10-year US bond yield slipped below 4 per cent, hitting a four-week low. These factors typically boost non-yielding assets like gold and silver.
However, a drop in US jobless claims to 216,000, the lowest since February, limited further gains as it indicated strength in the labour market.
Key Price Levels and Market Volatility
Despite fluctuations, analysts expect precious metals to hold key levels. Gold is likely to stay above the crucial $3,910 per troy ounce mark, while silver is seen holding above $47.70.
According to Jain, “We expect gold and silver prices to remain volatile this week due to swings in the dollar index and global financial markets.”
For this week, gold is expected to trade between $4,040–4,270, and silver between $50.00–54.70. Intraday support for gold stands at $4,164–4,140, with resistance at $4,240–4,270. Silver shows support at $52.20–51.70 and resistance at $53.40–54.00.
MCX Trading Strategy and Levels to Watch
In domestic markets, MCX gold has support at Rs 1,27,000–Rs 1,26,350 and resistance at Rs 1,28,200–Rs 1,29,100. Silver support lies at Rs 1,63,300–Rs 1,62,000, with resistance at Rs 1,67,700–Rs 1,70,000.
Sharing his trading outlook, Jain added, “We suggest buying gold around Rs 1,27,000 with a stop loss below Rs 1,26,300 and buying silver in the Rs 1,63,500–Rs 1,62,000 range for targets of Rs 1,67,700–Rs 1,70,000.”
