Gold Prices Dip 1% On Mcx As Fed Rate Cut Hopes Diminish

Gold prices witnessed a sharp correction in Monday’s session as traders reassessed global monetary cues. The fading likelihood of a US Federal Reserve rate cut in December, following stronger-than-expected US job market data, has reduced optimism for bullion investors. A firm dollar index further pressured gold, making the precious metal less attractive compared to other assets.  

Silver followed the downward trend, with December futures slipping 0.61% to Rs 1,53,209 per kg. Analysts noted that gold currently lacks strong positive triggers to sustain its earlier gains, with support levels seen around Rs 1,22,480 and resistance near Rs 1,25,500.  

Key highlights from the session include  

• MCX gold December futures dropped 1% to Rs 1,22,950 per 10 grams.  
• Silver December futures fell 0.61% to Rs 1,53,209 per kg.  
• The decline was attributed to fading hopes of a US Fed rate cut in December.  
• Stronger US job market data reduced expectations of monetary easing.  
• A firm US dollar index added pressure on gold prices.  
• Analysts see support for gold at Rs 1,22,480 and resistance at Rs 1,25,500.  
• Silver support levels are pegged at Rs 1,52,350 with resistance near Rs 1,55,980.  
• Geopolitical tensions have eased, further reducing safe-haven demand for bullion.  
• Volatility is expected to persist as investors await fresh global economic cues.  

The latest correction underscores the sensitivity of bullion markets to global monetary policy signals. With the Federal Reserve adopting a cautious stance, gold traders are likely to remain watchful of upcoming US economic data and central bank commentary. For Indian investors, the current dip may present opportunities, though analysts advise caution amid continued volatility.  

Sources: Zee News, Livemint, Goodreturns, Outlook Money