Gold prices saw a modest rise in India’s domestic futures market on Tuesday morning, December 24, driven by positive global cues. However, gains were limited by a strengthening US dollar and rising bond yields, which tempered the yellow metal’s rally.
According to Reuters, the US dollar remained near a two-year high, bolstered by elevated US Treasury yields. Globally, gold prices rose as investors adjusted expectations regarding the US Federal Reserve’s stance on interest rate cuts, with a less aggressive approach anticipated in the coming year.
In the previous trading session, the February gold futures contract settled at ₹76,144 per 10 grams, reflecting a 0.36% decline. This drop was attributed to a mix of US economic data, a rebound in the US dollar index, and higher bond yields.
Manoj Kumar Jain, of Prithvifinmart Commodity Research, noted that the US Consumer Confidence Index fell significantly in December, dropping to 104.7 from November’s revised reading of 112.8. Despite concerns over the economy’s health and a decline in consumer confidence during the holiday season, the demand for gold as a safe haven remained subdued. Jain explained that the rise in the dollar index and US 10-year bond yields, coupled with global equity market weakness, limited support for gold and silver. However, bargain hunting and relatively lower geopolitical tensions provided some support for the precious metals.
Experts’ Strategy for MCX Gold
For those trading on the MCX, Jain recommends buying gold around ₹76,000 with a stop-loss at ₹75,770 and a target of ₹76,500. For silver, he suggests entering around ₹88,650 with a stop-loss at ₹88,100 and a target of ₹89,800.
Jain also highlighted key international price levels, noting that gold has support at $2,614-$2,600 per troy ounce and resistance at $2,644-$2,658. Silver has support at $29.88-$29.55 and resistance at $30.50-$30.84.
On the MCX, Jain identifies gold support levels at ₹75,920-75,650 and resistance at ₹76,440-76,700. Silver’s support is seen at ₹88,450-87,700, with resistance at ₹89,900-90,500.
Rahul Kalantri, VP of commodities at Mehta Equities, also provided insights for traders. He identified gold support at $2,600-$2,581 and resistance at $2,640-$2,657. For silver, support is seen at $29.42-$29.20, with resistance at $29.92-$30.10.
In Indian rupee terms, Kalantri suggested that gold has support at ₹75,880-75,640, with resistance at ₹76,270-76,480. Silver’s support levels are ₹88,450-87,880, while resistance is at ₹89,630-90,100.
Market Outlook
Despite challenges from a stronger dollar and rising yields, analysts remain cautiously optimistic about gold’s outlook, with support from geopolitical factors and bargain buying. Traders are advised to monitor global economic indicators and adjust their positions based on evolving market conditions.
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