Gold & Silver Prices Rise, Strong Spot Demand & US Federal Reserve Rate Cut Expectations Lift Investor Sentiment

Mumbai: Gold and silver prices rose in the domestic futures market on Friday morning as strong spot demand and expectations of a US Federal Reserve rate cut lifted investor sentiment. During early trade, MCX gold December futures were trading 0.39 per cent higher at Rs 1,25,999 per 10 grams, while MCX silver December contracts were up 0.85 per cent at Rs 1,63,849 per kg.

“MCX Gold futures are now approaching a critical resistance zone between Rs 1,26,800 and Rs 1,27,500,” market watchers said. “A decisive daily close above this band can trigger a fresh rally toward Rs 1,29,000– Rs 1,30,500 in the coming sessions,” they added. On the downside, immediate support is seen near Rs.1,25,500, followed by a stronger base in the Rs.1,25,000– Rs.1,24,400 region, according to analysts.

Traders said gold prices have been supported by healthy demand in the physical market during the ongoing wedding season. Hopes of a Fed rate cut in December and a weaker US dollar have also pushed prices higher in recent days. However, the yellow metal has seen some volatility as investors booked profits and reacted to geopolitical updates, particularly developments in the Russia-Ukraine conflict.

Back home, the Reserve Bank of India’s Monetary Policy Committee will meet on December 3, 4 and 5, and markets are watching for any signals on interest rates. Meanwhile, the US dollar is set for its sharpest weekly fall in four months, as expectations of a US Fed rate cut continue to strengthen, further supporting precious metal prices. MCX Silver continues to display strong bullish behaviour after forming a rounded base pattern, reflecting healthy accumulation and a confirmed trend shift. “Immediate resistance is placed in the Rs1,63,500– Rs 1,65,000 zone. A clean breakout above this band can push prices toward Rs 1,67,000– Rs 1,70,000 in the coming sessions,” experts mentioned.

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