Gold Prices Dip in India Amid Profit Booking
Gold prices in India have taken a hit as profit booking occurs after reaching record highs. On December 18, gold futures on the Multi Commodity Exchange (MCX) fell by 0.20% to ₹1,34,619 per 10 grams. Similarly, silver futures dropped by 0.47% to ₹2,06,451 per kg. This decline comes alongside a mild rise in the US dollar, creating a cautious atmosphere among investors.
The focus is now shifting towards the upcoming US Consumer Price Index (CPI) data, which is expected to be released soon. This data will play a crucial role in shaping the expectations surrounding the US Federal Reserve's interest rate decisions. If the inflation data comes in lower than expected, it may support a rise in gold prices.
In the US, job market trends indicate a potential interest rate cut by the Federal Reserve in January, as the unemployment rate has risen to 4.6%, the highest level since September 2021. Additionally, the Bank of Japan's policy decision, expected on Friday, could cause significant market volatility, as it is likely to raise its benchmark rate to a 30-year high.
Experts like Manoj Kumar Jain from Prithvifinmart Commodity Research suggest that gold is currently facing support at $4,340 and $4,300, with resistance at $4,400 and $4,440 per troy ounce. For silver, support is at $65.00 and $63.60, while resistance is at $68.20 and $70.00. On the MCX, gold support is at ₹1,34,200 and ₹1,33,650, with resistance at ₹1,35,500 and ₹1,36,300.
Investment advice includes buying gold in the range of ₹1,34,400 to ₹1,34,000, with a stop loss at ₹1,33,300, aiming for targets of ₹1,35,500 and ₹1,36,200. For silver, a buying range of ₹2,05,000 to ₹2,02,000 is suggested, with a stop loss of ₹1,98,800 and targets of ₹2,10,000 and ₹2,14,000.
Rahul Kalantri from Mehta Equities also provided insights, stating that gold has support at ₹1,33,850 and ₹1,33,110, while resistance is at ₹1,35,350 and ₹1,35,970. Silver's support levels are ₹2,05,650 and ₹2,03,280, with resistance at ₹2,08,810 and ₹2,10,270.
This continuous fluctuation in gold and silver prices calls for careful monitoring and strategic investment decisions, especially in light of upcoming economic data and policy changes.
