Gold price rebound amid dollar plunge as US monthly job report remains in focus; MCX gold at Rs 76,638 per 10 gm
Gold prices are expected to be rangebound and consolidate between $2600 (~Rs 75000) and $2200 (~Rs 77600) for the next few days with positive bias, noted an analyst.
Gold price tracking the US weekly jobs payroll data were trading marginally in the green amid dollar losing strength. After a notable slide in the dollar index, it has recouped some of its losses and last was trading higher at 105.797.
MCX Gold rate
MCX gold rate is trading with a positive bias with the February futures contract up by 0.21 per cent or Rs 162 at Rs 76,638 per 10 gm.
Gold 24K and 22K rate
Even though a host of factor determine gold's rate in a city - 24K gold in Delhi is retailing at Rs 77,770 and 22 K is priced at Rs 71,300 per 10 gm.
Gold and silver price in previous session
Gold February futures contract were settled at $2,648.40 per troy ounce down by 1.04% and silver March futures contract were settled at $31.536 per troy ounce, down by 1.19%.
Gold price movement in domestic markets
Gold February futures contract settled at Rs76,476 per 10 grams with a loss of 0.80% and silver March futures contract settled at Rs92,424 per kilogram with a loss of 0.93%.
Fed Reserve Chair comments create doubt on likely rate cut in December
There has been infused a mixed sentiment after the Fed Reserve Jerome Powell's comments about the likely rate cut or monetary easing taking in view the better economic state.
Lower chances of rate cut by Federal Bank
Even though long term prospects for the bullion remain positive, any delay in the rate cut may lead to short term pressure on the yellow precious metal.
Lower rates favour gold
As gold is a non-interest yielding asset, any decline in the rates favour gold as the opportunity cost of holding bullion is then addressed.
Clouded with uncertainty- traders reduce long positions
Concerns around Fed rate cut have also led market participants to cut their long positions in the precious metals.
High liquidiation in Gold ETFs reported
As per the World Gold Council’s monthly report released on Thursday, WGC noted that global gold markets see significant liquidation in gold ETF in November month, outflow of 28.6 tonne of gold with a price of $2.1 billion and also pushed precious metal prices lower.
Gold price outlook remains volatile; expected to remain rangebound
Manoj Jain- Commodities Expert- India Nivesh said, "We expect gold and silver prices to remain volatile in today’s session amid volatility in the dollar index and the U.S. monthly job reports but it could hold its key support levels of $2,588 and $29.88 per troy ounce levels respectively on a weekly closing basis."
Gold has support at $2634-2622, while resistance at $2660-2678 per troy ounce and silver has support at $31.30-31.00, while resistance is at $31.80-32.10 per troy ounce in today’s session, he added.
MCX gold price resistance and support levels
At MCX, gold is having support at 76200-75950 and resistance at 76700-77000 while silver is having support at 91750-91100 and resistance at 93000-93600, added Jain.
Trading strategy in gold and silver
Ahead of important data print, Jain suggests traders to remain away from the precious metals for today.