Gold price today: Gold rates on the MCX erased losses and rose about half a per cent in morning trade on Friday, December 5, after the Reserve Bank of India’s (RBI) monetary policy decision. The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) unanimously decided to cut the repo rate by 25 basis points to 5.25%, while maintaining a neutral stance.
The policy decision lifted gold prices, which were in the negative in early deals. MCX gold February contracts were 0.25% up at ₹1,30,407 per 10 grams around 11 am. MCX silver March contracts were up 1.44% at ₹1,80,700 per kg at that time.
The dollar’s weakness and healthy spot demand also supported gold prices. The US dollar is near a one-month low, supporting gold prices.
On the global front, investors await US inflation data, due later today, which will shape expectations about the US Federal Reserve’s policy decision next week.
Recent mixed US macro data have created uncertainty over the US Fed’s next policy move.
As Reuters reported, data showed on Thursday that the new US unemployment benefit claims dropped to 1,91,000 last week. This was the lowest in more than three years and significantly below economists’ estimate of 2,20,000. On the other hand, the ADP report on Wednesday showed US private payrolls declined by 32,000 in November, marking the steepest drop in more than two and a half years.
“Weak labour market indicators — including a sharper-than-expected drop in ADP payrolls and elevated layoffs — have increased the likelihood of a rate cut at the upcoming FOMC meeting, with market odds now nearing 87%,” said Rahul Kalantri, VP Commodities, Mehta Equities.
Gold and silver: Key levels to watch
According to Kalantri, gold has support at $4165 and $4135, while resistance is at $4260 and $4295. Silver has support at $56.40 and $55.85, while resistance is at $57.75 and $58.25.
In INR, Kalantri said gold has support at ₹1,29,350 and ₹1,28,650, while resistance is at ₹1,30,750 and ₹1,31,200. Silver has support at ₹1,76,750 and ₹1,75,200, while resistance is at ₹1,79,210 and ₹1,80,300.
According to brokerage firm Motilal Oswal, MCX gold February contracts have key supports at ₹1,29,350 and ₹1,28,800, while resistance is at ₹1,30,300 and ₹1,30,800. MCX silver March contracts have supports at ₹1,80,700 and ₹1,78,650, while resistance is at ₹1,83,800 and ₹1,85,700.
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.