As investors awaited November's US inflation statistics to determine the Federal Reserve's interest rate stance, gold prices increased by almost 1% in the local futures market. The gold boom was also bolstered by heightened geopolitical tensions.
Today's gold price: As investors awaited November US inflation statistics to get clues about the US Federal Reserve's interest rate trajectory, gold prices jumped by almost 1% in the local futures market during Wednesday's morning session. The yellow metal was also supported by rising geopolitical tensions and robust local spot market demand. Around 9:15 AM, MCX Gold for the February 5 expiry was up 0.70 percent at ₹78885 per 10 grams.On Wednesday, gold prices in global markets reached a two-week high.prior to the US Consumer Price Index (CPI) data being released later that day. Focus is also on the Producer Price Index (PPI) data, which is due on Thursday.
Experts predict that the CPI for November will be 2.7%, down from 2.6% the month before. The PPI for November might be 2.5% as opposed to 2.4% in October.
The US Fed's monetary policy decision on December 18 may be influenced by these two important macroeconomic prints.
The majority of market participants and analysts anticipate that the US Fed will lower rates by 25 basis points next week.
A Reuters survey of analysts predicts that on December 18, the US Fed will likely lower interest rates by 25 basis points. But given worries about inflationary risks, the Fed might stop in late January.
Gold prices were also raised by news reports regarding Middle Eastern geopolitical events. The Israeli military attacked two Syrian navy sites and the majority of Syria's strategic weapons depots on Tuesday, according to a Reuters report.
The gold strategy of experts
Ahead of today's US inflation report, experts predict that the price of gold and silver will continue to fluctuate. They point out that even while the prognosis for the yellow metal is still favorable, some profit booking might be triggered by the current rally.
The rapid pre-event rise indicates caution, even though the general bullish prognosis for gold is still in place. It is recommended that traders keep their stop-loss levels on the MCX close to ₹77,250. As the market prepares for the next significant directional indication, $2,540 will serve as a strong support level on the Comex, according to Jateen Trivedi, VP Research Analyst-Commodity and Currency at LKP Securities.
"Gold's resistance is at $2,714-2,728 and its support is at $2,684-2,667. The resistance for silver is above $32.22-31.40, while the support is between 31.80 and 31.65. Gold's resistance is at ₹78,690-78,940, while its support is at ₹78,080-77,840 in INR. Rahul Kalantri, vice president of commodities at Mehta Equities, stated that silver has resistance at ₹96,300-96,940 and support at ₹94,850-94,080.
Prithvifinmart Commodity Research's Manoj Kumar Jain advises purchasing gold above ₹78,400 with a stop loss of ₹78,140 in order to reach the aim of ₹79,000. He also advises purchasing silver around ₹95,200 with a stop loss of ₹94,450 in order to reach the target of ₹96,600.
In today's session, silver has support at $32.40-32.15 and resistance at $33.00-33.30 per troy ounce, while gold has support at $2,700-2,684 and resistance at $2,747-2,762 per troy ounce. According to Jain, gold has resistance at ₹78,700-79,000 and support at ₹78,000-77,770 on the MCX, while silver has resistance at ₹96,200-96,850 and support at ₹94,850-94,100.
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