Mumbai, 8 December. Following a recent rally, traders turned to profit booking, leading to a decline in gold and silver prices on the Multi Commodity Exchange (MCX) during Monday’s trading session.
This fall was observed amid weak demand in the spot market. However, the decline was limited due to a weaker US dollar and investors’ hopes of an interest rate cut by the US Federal Reserve this week.
In early trade, MCX gold February futures were trading at Rs 1,30,409 per 10 grams, down 0.04 percent.
Experts noted, “MCX gold is currently trading within an emerging channel pattern, around the Rs 1,30,300–1,30,400 per 10 grams zone, facing rejection near Rs 1,32,250, which now acts as resistance.”
MCX silver March futures fell by 1 percent, trading at Rs 1,81,600 per kilogram.
This decline comes after a strong rally in the previous session, where gold futures closed 0.30 percent higher at Rs 1,30,462 per 10 grams, and silver futures rose nearly 3 percent to close at Rs 1,83,408 per kilogram, having touched a record high of Rs 1,85,234 during the day.
Prices of precious metals remain highly volatile as investors await the outcome of the US Federal Open Market Committee (FOMC) meeting scheduled for 10 December.
The US central bank is set to announce its policy decision amid mixed economic indicators.
The Personal Consumption Expenditure (PCE) Price Index, the Fed’s preferred inflation gauge, increased by 0.3 percent in August and September this year. On an annual basis, it rose from 2.7 percent in August to 2.8 percent in September, indicating a slight rise in inflation.
At the same time, expectations of rising interest rates are putting pressure on the US dollar. The dollar index remains near a six-week low of 98.76.
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SKT/
My name is Ganpat Singh Choughan. I am an experienced content writer with 7 years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
