Gold price today: Rates hover near record high; experts unveil key levels for MCX Gold

Gold price today: Gold rate saw an uptick in the domestic futures market Tuesday morning supported by geopolitical developments and healthy demand from the domestic spot markets. However, rise in US dollar and treasury yields capped gains for the yellow metal.

According to a Reuters report, the benchmark 10-year treasury yields jumped to a 12-week peak while the dollar rose to its highest level since August 2.

MCX Gold for December 5 expiry traded 0.21 per cent higher at ₹78,200 per 10 grams around 9:20 am.

In the previous session, MCX Gold rose to a record high of ₹78,460 per 10 grams, while silver also jumped to its all-time high of ₹98,598 per kg.

In international markets, gold prices remained steady after hitting a record high of $2,740.37 in the previous session.

"Gold prices soared to record highs, and silver surged to fresh 12-year peaks on Monday, following the Chinese central bank’s decision to reduce its one-year and five-year prime loan rates by 25 basis points. This move bolstered demand for safe-haven metals. However, the prices later eased from their peaks due to gains in the dollar index and rising US 10-year bond yields," Rahul Kalantri, VP of commodities at Mehta Equities, observed.

Escalating tensions in West Asia, the stability of the dollar index, interest rate cuts, expectations of further rate cuts by the US Fed, and uncertainty surrounding the US election 2024 outcome have supported gold prices.

Experts are positive about gold's medium-term prospects due to expectations of more rate cuts and a decline in the US dollar and bond yields.

"Gold initially rallied after Russian President Vladimir Putin, during the BRICS summit, proposed a new payment system for BRICS nations to counter the US dollar's dominance in global foreign exchange reserves. Gold stands to benefit from potential de-dollarization efforts by BRICS and other nations. Silver, a fellow precious metal, has mirrored gold’s rally. However, strengthening dollar and US bond yields could cap further gains," said Kalantri.

A Reuters report stated that Federal Reserve Bank of Dallas President Lorie Logan said on Monday she sees more rate cuts ahead.

According to the CME Fedwatch tool, traders now see an 87 per cent chance of a Fed rate cut in November.

Key levels for MCX Gold today

According to Kalantri of Mehta Equities, gold has support between $2,710 and $2,680, with resistance in the range of $2,745 to $2,761. For silver, support lies between $33.52 and $33.30, while resistance is at $34.15 to $34.42. In INR terms, gold has support between ₹77,780 and ₹77,540, with resistance at ₹78,280 to ₹78,500. Silver's support is between ₹96,540 and ₹95,850, with resistance at ₹98,050 to ₹98,980.

Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold and silver prices to remain volatile this week, given the volatility in the dollar index and geopolitical tensions.

"Gold has support at $2,722-2,704, while resistance at $2,750-2,774 per troy ounce and silver has support at $33.64-33.20, while resistance is at $34.40-34.84 per troy ounce in today’s session. On the MCX, gold has support at ₹77,770-77,400 and resistance at ₹78,300-78,550 while silver has support at ₹96,650-95,800 and resistance at ₹98,500-99,400," said Jain.

"We suggest booking profit in gold and silver at current levels and waiting for some corrective dips to initiate fresh long positions; the overall long-term trend in gold and silver remains bullish," Jain said.

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Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.