Mumbai, 18 December. Gold and silver prices fell in the domestic futures market on Thursday morning following a recent rally that saw these precious metals reach record highs. Investors began profit booking, leading to a decline in prices.
The slight rise in the US dollar and cautious sentiment ahead of upcoming US inflation data impacted gold and silver rates.
In early trade, MCX February contract gold slipped 0.20 percent to trade at ₹1,34,619 per 10 grams.
According to market experts, gold finds support between ₹1,33,850 and ₹1,33,110, while resistance lies in the range of ₹1,35,350 to ₹1,35,970. For silver, support ranges from ₹2,05,650 to ₹2,03,280, with resistance between ₹2,08,810 and ₹2,10,270.
In the previous session, gold and silver prices had shown significant gains. On Wednesday, MCX February contract gold closed 0.36 percent higher at ₹1,34,894 per 10 grams, while silver touched ₹2,07,435 per kilogram, marking a 4.9 percent rise. Silver also hit a record high of ₹2,07,833 during the session.
Investors are now awaiting the US Consumer Price Index (CPI) data for November, due on Thursday, followed by Personal Consumption Expenditure (PCE) data on Friday. These figures are closely watched as they influence expectations regarding potential interest rate changes by the US Federal Reserve.
Experts believe that if inflation data comes in lower than expected, gold prices could rise further, as lower inflation may prompt the Federal Reserve to reduce interest rates, benefiting gold.
US unemployment rose to 4.6 percent in November, the highest since September 2021, intensifying speculation that the Federal Reserve might cut interest rates by 0.25 percent in January.
Additionally, investors are keeping an eye on Japan’s central bank policy meeting on Friday, where the benchmark interest rate might be raised for the first time in 30 years. This move could cause volatility in global financial markets, impacting gold and silver prices.
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Durgesh Bahadur / Daily Kiran
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