Gold and Silver Price: Gold and silver prices opened sharply lower on Thursday on the Multi-Commodity Exchange (MCX) after the US Federal Reserve’s latest policy decision.
The fall came despite a supportive global backdrop, as investors booked profits following the Fed’s 25-basis-point rate cut.
On MCX, gold December futures opened 1.27 per cent lower at Rs 1,19,125 per 10 grams, compared to its previous close of Rs 1,20,666.
Similarly, silver December futures started 0.4 per cent lower at Rs 1,45,498 per kilogram as against Rs 1,46,081 in the previous session.
By 9:20 AM, MCX gold was trading down by Rs 1,827 or 1.51 per cent at Rs 1,18,839 per 10 grams, while silver declined by Rs 1,411 or 0.97 per cent to Rs 1,44,670 per kilogram.
Global Market Trends
In the international markets, spot gold prices edged higher by 0.2 per cent to $3,937.88 per ounce, supported by a slight pullback in the US dollar. However, US gold futures for December delivery slipped 1.2 per cent to $3,950.70 per ounce. Spot silver, on the other hand, rose sharply by 2.85 per cent to $48.40 per ounce, reflecting strong investor demand.
The dollar index was up 0.15 per cent at 98.82, limiting gains in precious metals. Investors also awaited developments from the meeting between US President Donald Trump and Chinese President Xi Jinping, which could influence market sentiment.
Analyst View
Commodity expert Manoj Kumar Jain noted that gold and silver prices initially rose following the Fed’s rate cut but later pared gains after hawkish remarks from Fed Chair Jerome Powell.
“The Fed reduced rates by 25 basis points to 4.0 per cent, but Powell’s comments about uncertainty over further cuts this year triggered some profit booking,” Jain said.
“Gold and silver crossed $4,000 and $48 per ounce, respectively, in early trade, but later retreated. We expect volatility to persist this week due to fluctuations in the dollar index, ECB policy cues, and the US-China presidential meeting.”
Support and Resistance Levels
Jain highlighted that gold has immediate support at $3,945–3,900 and resistance at $4,044–4,078 per ounce, while silver’s support lies at $47.40–46.80 and resistance at $48.20–48.84 per ounce.
On MCX, gold is expected to find support around Rs 1,19,400–Rs 1,18,000 and face resistance near Rs 1,21,750–Rs 1,23,000. Silver could trade between Rs 1,44,000 and Rs 1,49,200 per kilogram.
Jain advised traders to avoid fresh buying before the outcome of the US-China talks, as markets may witness sharp price swings driven by global cues.
