Global gold and silver prices are expected to fall sharply as US Fed rate cut expectations fade and tariff concerns ease. However, Mumbai gold rates stayed unchanged at Rs 1,25,550 for 10g of 24K gold. MCX gold futures slipped 1.19 per cent and silver fell 1.65% in early trade
Representational Image. File Pic
As the US Federal Reserve rate cut in December faded and concerns over US tariffs eased, the prices of gold and silver are expected to drop sharply in the global market.
Despite the indications of global prices and the market for yellow metal going down in the next few weeks, the price of gold in Mumbai remained unchanged as compared to Tuesday. The price of 10 grams of 24-carat gold was recorded at Rs 1,25,550 on Wednesday.
MCX Gold futures
This reduced the appeal of safe-haven assets like bullion. At early trade, MCX Gold December futures were trading 1.19 per cent lower at Rs 1,21,466 per 10 grams. MCX Silver December contracts also declined 1.65 per cent to Rs 1,52,750 per kg.
Some of the market watchers further asserted that "Gold has support at $4000-3965 while resistance is at $4,075-4,110. Silver has support at $49.70-49.45, while resistance is at $50.75-51.10," as cited by news agency IANS.
They further emphasised, "In INR gold on Tuesday had support at Rs 1,22,350-1,21,780 while resistance is at Rs 1,23,750-124,500. On the other hand, Silver on Tuesday had support at Rs 1,53,850-,52,100, while resistance was at Rs 1,56,540 and 1,57,280."
City-wise gold prices
Gold prices across major Indian metros remained unchanged on Wednesday, November 19, with 24K rates hovering around the Rs 125,000 mark for 10 grams.
Mumbai, which is believed to be one of the largest gold jewellery consumers across the country, recorded the price of 24-carat gold at Rs. 125,550 for 10 grams. Moreover, the price of 22-carat gold in Mumbai was recorded at Rs. 1,15,100.
Chennai recorded the price of 24K gold at Rs 1,25,990 for 10 grams.
Delhi, on the other hand, recorded the price of 24-carat gold at Rs. 1,25,690 for 10 grams.
Prices of Gold in the International Market
Internationally, gold prices slipped for the fourth straight session on Tuesday. A stronger US dollar and weakening expectations of a rate cut next month continued to weigh on the metal, reported IANS.
The dollar index on Tuesday rose to 99.59, making gold more expensive for buyers using other currencies.
Gold, which is priced in US dollars, becomes costlier when the greenback strengthens, resulting in reduced demand.
With the shutdown now over, attention has shifted to key data releases expected this week, including the September nonfarm payrolls report on Thursday, reported IANS.
(With inputs from IANS)
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