In the wake of global economic uncertainties and key data releases on the horizon, gold prices in the domestic futures market experienced an uptick during Tuesday’s morning session. Investors are closely monitoring factors such as interest rates, geopolitical events, and macroeconomic indicators, which have historically influenced the trajectory of gold prices.
As anticipation builds around the release of inflation data in the United States and India, gold prices responded positively to global cues. The upcoming announcement from the U.S. Federal Reserve, scheduled for Wednesday, December 13, is also a focal point for market participants.
Analysts are closely watching the expected U.S. headline inflation, forecasted to remain flat for November, and core inflation to hold steady at an annual pace of 4 percent. In India, inflation is likely to hover around 6 percent for November, primarily driven by a significant increase in vegetable prices.
Despite the Reserve Bank of India’s recent decision to maintain interest rates, the U.S. Federal Reserve is expected to follow suit on Wednesday, even as inflation exceeds its 2 percent target and the job market remains resilient. Traders, as reported by Reuters citing the CME FedWatch Tool, widely anticipate the Fed to leave rates unchanged at 5.25-5.50 percent this week, with a 77 percent probability of a rate cut in May.
In the midst of these developments, MCX Gold traded 0.32 percent higher at ₹61,315 per 10 grams around 11 am, reflecting the impact of global economic factors on the precious metal.
Market experts weigh in on potential strategies for navigating the current landscape. According to Rahul Kalantri, VP of Commodities at Mehta Equities, gold prices may exhibit volatility in the current session. Kalantri provides key support and resistance levels, stating that gold has support at $1,972-1,960 and resistance at $1,995-2,007. For silver, support is at $22.65-22.51, with resistance at $23.05-23.24.
Considering the Indian rupees (INR), Kalantri suggests that gold has support at ₹60,870-60,710, with resistance at ₹61,280 and ₹61,470. Silver is expected to find support at ₹71,350-70,680 and resistance at ₹72,570 and ₹73,030.
Brokerage firm Motilal Oswal Financial Services anticipates a trading range for MCX Gold, with support at ₹61,100-60,900 and resistance at ₹61,500-61,700. For MCX Silver, support is projected at ₹71,600-71,200, and resistance is anticipated at ₹72,700-73,300.
SMC Global Securities provides a broader outlook, estimating that gold may trade in the range of ₹61,000-61,400, and silver may experience a range of ₹71,500-72,100, with a sideways to mixed bias.
As investors navigate these uncertain times, the precious metals market remains a key area of focus, with gold prices poised to react to a confluence of global economic factors in the coming days.
