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Gold rates today: Gold prices has been on a bull run amid easing crude oil prices and receding inflation concerns supported bullion demand. However, a stronger US dollar and expectations of another Federal Reserve interest rate hike limited further gains in international markets.
On the domestic front, MCX gold futures for December delivery were quoted at ₹1,43,129 per 10 grams, up ₹577 or 0.4%, according to the latest available market data. On Monday, the contract opened at ₹1,43,562 and touched an intraday high of ₹1,44,400 in the previous session.
The recovery in gold prices comes after a sharp correction in October, with investors assessing whether the recent rebound can sustain itself.
The recent recovery in gold prices has been supported by easing crude oil prices, which have helped reduce concerns about inflation and the possibility of prolonged restrictive monetary policy by global central banks.
Crude oil prices declined sharply after US President Donald Trump played down the possibility of fresh military strikes against Iran, raising hopes of progress in diplomatic efforts. Lower energy prices have eased inflationary concerns, potentially giving central banks greater flexibility on interest rates.
On Tuesday, Gold prices eased on Tuesday as investors took profits after bullion's more than 1% rally in the previous session and awaited US inflation data for clues on the Federal Reserve's policy path. Spot gold was down 0.6% at $4,114.48 per ounce, as of 0430 GMT. US gold futures for December delivery edged 0.2% higher to $4,123.50.
However, the upside remained restricted on Tuesday as the US dollar strengthened and Treasury yields increased. Spot gold slipped 0.6% to $4,115.12 per ounce, as investors booked profits following the previous session's rally.
Another factor weighing on bullion is the possibility of a Federal Reserve rate hike in December. Stronger-than-expected US employment data has reinforced expectations that the central bank may maintain a tighter monetary policy for longer. Investors are now awaiting US consumer price index (CPI) and producer price index (PPI) data for further clarity on the interest rate trajectory.
Geopolitical uncertainty, particularly developments surrounding US-Iran tensions, continues to provide support to gold because of its safe-haven appeal.
Market experts believe gold could extend its recovery towards ₹1.48 lakh per 10 grams, provided it sustains above key technical support levels. However, they expect volatility to persist amid fluctuations in the US dollar, bond yields and geopolitical developments.
Brokerage firm Religare Broking said gold may remain volatile with a cautious bias this week as a stronger US dollar, rising bond yields and firm US employment data continue to limit its upside. However, geopolitical uncertainty, particularly around US-Iran tensions, could provide safe-haven support.
The brokerage added that US CPI, PPI data and commentary from Federal Reserve officials will be important triggers for bullion prices. Softer inflation readings could support gold, while stronger inflation data may weigh on the metal.
From a technical perspective, Religare Broking said the near-term chart setup for MCX gold has turned positive, indicating improving bullish momentum. The ₹1,39,000 level remains a strong support zone, and holding above it could sustain the upward trend, with fresh buying emerging on dips.
The brokerage has recommended a buy strategy in December gold futures in the ₹1,43,850– ₹1,43,900 range, with a stop loss of ₹1,41,400 and an upside target of ₹1,48,000.
Ponmudi R, CEO of Enrich Money, said that the metal is holding above the ₹1,43,000– ₹1,43,700 band, which has transitioned from a resistance zone into immediate support. The next downside support is placed at ₹1,40,000– ₹1,41,000, while immediate resistance is seen at ₹1,45,300– ₹1,46,000, followed by ₹1,48,000– ₹1,48,600.
On the technical front, the RSI is hovering near 48 and gradually approaching the neutral 50 mark, while the MACD has crossed above its signal line, indicating an improvement in underlying momentum.
Ponmudi also highlighted that MCX gold is underperforming silver in the current session, with gold gaining around 1% compared with silver's approximately 1.9% advance. Silver is witnessing a stronger rebound from deeply oversold levels.
He added that the rupee's sharp appreciation is limiting the translation of international gold gains into domestic prices, resulting in a relatively subdued advance in MCX gold compared with its international counterpart.
The near-term outlook remains cautiously constructive, with a sustained move above ₹1,46,000 required to extend the recovery. However, a decisive breakdown below ₹1,43,000 could expose gold to a decline towards ₹1,41,000.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Vaamanaa covers business and stock market news. Started in 2020, she has been producing news on digital platforms for over 4.5 years now. She writes on markets, commodities, IPOs, and industry. She has worked for news channels like Jagran New Media and Business Insider India. You can reach out to her at vaamanaa.sethi@htdigital.in.
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