Gold prices saw a modest rise in domestic futures trading on Friday, December 20, as the dollar’s strength, fueled by robust U.S. economic data, limited the yellow metal’s gains. By 9:40 AM, MCX Gold for the February 2025 expiry was up 0.15%, trading at ₹75,768 per 10 grams.
In international markets, gold was poised to close the week on a weaker note. This follows the U.S. Federal Reserve’s revision of its interest rate cut outlook. Additionally, data showing stronger-than-expected U.S. GDP growth in the third quarter, coupled with lower-than-anticipated jobless claims, further bolstered the dollar, putting pressure on gold prices.
The market’s attention is now shifting toward the U.S. Personal Consumption Expenditure (PCE) data, which is set for release later today.
Fed’s Hawkish Stance Pushes Rate Cut Expectations Lower
Manav Modi, a commodity research analyst at Motilal Oswal Financial Services, noted that the U.S. Federal Reserve’s recent hawkish stance, combined with positive economic data, has raised expectations that the Fed will pause rate cuts, with the probability now standing at 90%, according to CME’s FedWatch Tool.
“Investors are awaiting the release of the core PCE data, the Fed’s preferred inflation gauge, for further insights into the economic outlook,” Modi added.
Experts Outline Key Support and Resistance Levels for Gold and Silver
Commodity analysts have suggested critical levels for both gold and silver as the market continues to navigate uncertainty.
Manoj Kumar Jain, head of research at Prithvifinmart Commodity Research, recommended that traders avoid entering the market until it stabilizes. He also advised long-term investors to accumulate gold in a systematic investment plan (SIP) style. Jain identified key support for gold at $2,588-$2,564 per ounce and resistance at $2,622-$2,644 per ounce. For silver, he noted support at $29.10-$28.80 per ounce and resistance at $29.66-$29.88 per ounce.
For the MCX, Jain highlighted gold support levels at ₹75,330-₹74,850, with resistance at ₹75,920-₹76,200. He set silver support at ₹86,400-₹85,750, with resistance at ₹88,000-₹88,800.
Similarly, Rahul Kalantri, Vice President of Commodities at Mehta Equities, indicated that gold has support at $2,584-$2,569 and resistance at $2,618-$2,635 per ounce. For silver, support was pegged at $28.80-$28.60 and resistance at $29.24-$29.40. In INR terms, Kalantri set gold support at ₹75,450-₹75,240, with resistance at ₹76,000-₹76,440. Silver’s support was placed at ₹86,550-₹85,980, while resistance stood at ₹88,130-₹88,940.
Related topics:
- How Many Rupees Gold Today?
- Gold Prices in Chennai Rise Amid U.S. Elections
- Swiss Gold Exports Surge Amid Strong Demand from India
