Gold price today: Yellow metal declines after Fed cuts rates by 25 bps; experts share key levels for MCX Gold rate

Gold price today: Gold rates declined in the domestic futures market Friday morning on profit booking at higher levels after the US Fed cut rates by 25 bps on expected lines. MCX Gold for December 5 traded 0.06 per cent lower at ₹77,339 per 10 grams around 9:30 am.

In international markets, gold prices declined amid a lack of fresh triggers. With the US election over and the Fed cutting rates on expected lines, traders and investors assess the impact of Donald Trump's presidency and its implications for the US interest rate outlook.

"Bullion had notched up a series of record highs in the run-up to the elections but tumbled more than 3 per cent after Trump’s victory, on the back of dollar rally to four-month highs. Quick conclusion to a hotly contested presidential election also cleared a key point of uncertainty for global financial markets, triggering a risk-on rally across the board while pressuring safe-haven assets such as gold," said Manav Modi, Analyst, Commodity Research, Motilal Oswal Financial Services.

"The Federal Reserve cut its benchmark interest rate by a quarter point as its Chair Jerome Powell hailed the strength of the US economy and said he would not resign if incoming president Donald Trump asked him to. Focus now shifts to Michigan consumer sentiment and updates regarding the China legislative congress meeting," Modi said.

Experts are positive about the prospects of gold prices due to the start of rate cut cycle.

Colin Shah, MD, Kama Jewelry, underscored that we are currently in a low-interest regime after the US Fed announced two straight cuts. The RBI is expected to cut rates next month, thereby fuelling the rally in gold further.

"As we are expected to be in a lower for longer interest rate regime, gold prices are expected to stay elevated. The geopolitical tensions are expected to support the yellow metal further. We reiterate our view on the gold price trajectory. In the long term, gold prices will touch $3,000 globally and ₹86,000 in the domestic markets,” said Shah.

Experts' strategy for MCX Gold

According to Rahul Kalantri, VP of commodities at Mehta Equities, gold may find support at $2,674–$2,655, with resistance at $2,718–$2,735. Silver has support levels at $31.64–$31.50 and resistance between $32.22–$32.45. In Indian rupees, gold has support at ₹77,220– ₹76,950, with resistance at ₹77,880– ₹78,160. Silver support lies at ₹91,680– ₹90,850, while resistance is seen between ₹92,840– ₹93,380.

Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold and silver prices to remain volatile in today’s session ahead of the US consumer sentiment data.

"Gold has support at $2684-2664, while resistance at $2,722-2,740 per troy ounce and silver has support at $31.50-31.20, while resistance is at $32.20-32.55 per troy ounce in today’s session," Jain said.

"On the MCX, gold has support at ₹77,100-76,650 and resistance at ₹77,770-78,150, while silver has support at ₹91,650-90,800 and resistance at ₹93,200-94,000. We suggest buying silver around ₹92,000 with a stop loss of ₹91,450 for the target of ₹93,500," said Jain.

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