Gold price today: Gold rates dropped significantly in the domestic futures market on Monday morning as investors exercised caution ahead of two critical events this week: the US election and the Federal Reserve’s policy announcement. Both are expected to significantly impact the movement of the US dollar, bond yields, and bullion prices going forward. MCX Gold for December 5 expiry traded 0.55 per cent down at ₹78,430 per 10 grams around 9:30 am.
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In international markets, gold traded with mild gains, while the dollar index fell about half a per cent, close to a near two-week low hit in the previous session. Since gold is priced in dollars globally, a weak US currency makes gold more appealing to other currency holders.
Gold Silvr hit a Record high
Bullion hit a record high of $2,790.15 last Thursday, October 31. On the MCX, gold hit a record high of ₹79,775 on Wednesday, October 30.
The focus is now on Tuesday’s US presidential election. Opinion polls indicate a tight fight between Democratic candidate Kamala Harris and Republican Donald Trump.
Fed’s interest rate decision
Besides, the Fed’s interest rate decision and Chair Jerome Powell’s remarks on Thursday are key events this week. According to reports, traders anticipate a 98 per cent chance of a 25 bps cut.
China is also a key factor influencing gold prices as the country is a key metals consumer. According to a Reuters report, “the Standing Committee of the National People’s Congress in China will meet from November 4-8, with markets widely expecting the approval of more fiscal stimulus measures.”
“A larger-than-expected drop in U.S. non-farm payrolls lent support to gold and silver at lower levels. However, uncertainty surrounding the US Presidential elections and safe-haven demand for the dollar has also contributed to some profit-taking in precious metals,” said Rahul Kalantri, the VP of commodities at Mehta Equities.
Experts’ Strategy for MCX Gold
Kalantri anticipates that gold and silver prices will remain volatile this week, given the upcoming US presidential elections, Federal Reserve policy meetings, fluctuations in the dollar index, and ongoing geopolitical tensions.
“Gold is expected to find support at $2,705, with resistance between $2,788. Silver has support at $32.00 and resistance at $33.00 In INR terms, gold has support at ₹77,655 with strong resistance at ₹79,945, while silver has support at ₹94,780- ₹94,150, and resistance at ₹96,000- ₹96,780.
We suggest waiting for some corrective dips before initiating fresh long positions in gold and silver, as risk-reward is not in favour at current levels. However, the long-term positive trend in both precious metals is intact,”.
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