Gold prices rebound from morning lows as focus shifts to Fed meeting minutes later today

Gold prices after morning losses have entered in the green territory as Fed meeting minutes are awaited for better view on interest rate trajectory going ahead. Lower interest rates are positive for precious metals including gold gain promience and safe-haven appeal as lower interest rates reduce the opportuntity of holding the non-interest yielding bullion.

Towards the close of the morning session at around 4:!9 pm, gold December futures were up 0.17 per cent or Rs 131 at Rs 75,442 per 10 gm, while at the day's low it marked Rs 74,852 per 10 gm levels.

Gold prices also remain supported at lower levels on the back of trade war implication. Trade war fears helped, gold prices later found support and rose as Donald Trump vowed to levy a 10% tariff on all imports from China and 25% on all goods entering the US from Canada and Mexico.

Meanwhile, silver December futures zoomed sharply by as much as 0.8 per cent or Rs 701 to Rs 88400 at the last count.

Pranav Mer, Vice President, EBG - Commodity & Currency Research, JM Financial Services Ltd said, "Gold remains under selling pressure, weighed by a former U.S dollar and on reduced safe-haven bets after reports of a possible ceasefire between Israel and Lebanon, however, U.S president-elect Donald Trump's tariff threats are likely to provide some support".

"In the sessions ahead traders will be looking at the minutes from the Federal Reserve's November meeting, U.S. GDP revisions and core PCE data that are expected to provide insights into the U.S central bank’s policy outlook"."On chart... momentum looks down with resistance at 75500 and next at 76200, while on the downside more correction is expected towards 74750/ 74000 levels," added the expert.

Pertinently, in the previous day's trade gold and silver prices sharply corrected after news that Israel-Lebanon are inking a ceasefire agreement. Gold prices showed the biggest single day fall since November 2020 after this news. Silver prices also fell amid improved risk sentiment and easing safe-haven buying.