Gold Price Today: Rates Rise on Buying at Lower Levels - Key Levels for MCX Gold
Gold Price Today: Gold prices rose slightly today, but remained subdued due to a stronger US dollar and easing geopolitical tensions. Experts suggest support for MCX Gold at ₹75,000–74,740 and resistance at ₹75,660–76,000. Traders should watch these levels for potential movements.
Gold Price Today: Gold prices saw a modest rise in India’s domestic futures market today, following buying at lower levels. However, the gains were capped due to a stronger US dollar and the growing possibility of a ceasefire in the Israel-Hezbollah conflict, which dampened gold’s appeal as a safe-haven asset. The latest MCX Gold contract for December 5 expiry traded 0.21% higher at ₹75,472 per 10 grams as of 9:15 AM. Despite the uptick, the global outlook for gold remains cautious as both geopolitical and economic factors weigh on its price.
Gold Price Today: Show Modest Recovery Amid Geopolitical Calm
In the international markets, gold prices experienced a notable dip earlier this week, reaching their lowest point in over a week, largely due to the strengthening US dollar and reports of a potential ceasefire between Israel and Hezbollah. According to a report by Reuters, the US dollar rose against major currencies following President Donald Trump’s threats of a 25% tariff on all imports from Canada and Mexico. The strengthening dollar tends to negatively impact gold prices, as it reduces the metal's appeal to international investors.
Moreover, reports of a potential ceasefire between Hezbollah and Israel, which was expected to be announced by US President Joe Biden and French President Emmanuel Macron, also weighed on gold’s status as a safe-haven asset. Easing geopolitical uncertainty, which had previously driven safe-haven buying, has caused investors to shift their focus away from precious metals.
The Impact of the Strong US Dollar and Geopolitical Developments on Gold
The recent rise in the US dollar significantly impacted gold prices, pushing them lower in global markets. As the dollar gains strength, gold becomes more expensive for buyers using other currencies, which reduces demand. Additionally, as geopolitical tensions in the Middle East show signs of easing, investors are less inclined to seek out gold’s safe-haven status, further contributing to the subdued price action.
Gold prices had seen significant losses in the previous trading session, falling 3% following news of a potential ceasefire agreement between Israel and Lebanon. This marked the largest single-day drop in gold prices since November 2020. In addition, silver prices followed suit and saw a decline, as improved risk sentiment and easing tensions led to a reduction in safe-haven buying.
Manoj Kumar Jain of Prithvifinmart Commodity Research noted that the gold market is under pressure from these factors, with the yellow metal experiencing one of its worst trading sessions in recent months. However, despite the losses, Jain suggests that long-term investors could view the current dip as an opportunity to add to their positions.
Key Technical Levels for MCX Gold and Silver
Gold’s technical outlook suggests important support and resistance levels in both the international and domestic markets. According to experts, gold has support at $2,622–2,604 per troy ounce, while resistance is seen at $2,658–2,680. These key levels will be important to watch for any potential price breakouts or reversals in the international market.
For MCX Gold, support is expected at ₹75,000–74,740, with resistance between ₹75,660–76,000. Silver also has a similar setup, with support at ₹86,800–86,000 and resistance at ₹88,500–89,200. Jain advises traders to stay cautious for now, as the market remains volatile. He suggests waiting for more stability in global markets before taking significant positions in gold or silver.
SMC Global Securities, a leading brokerage firm, believes that gold will likely trade in a narrow range of ₹75,100–75,500 today, with silver expected to hover between ₹87,000–88,000. Given the current market sentiment, both metals are expected to see a sideways to bearish trend in the near term.
Gold and Silver: What Traders Should Know
For traders looking to navigate the gold and silver markets, it’s important to be aware of the current macroeconomic and geopolitical landscape. While buying at lower levels may offer opportunities, the strong US dollar and easing geopolitical tensions may continue to weigh on prices. Traders should focus on the following key levels for MCX Gold and Silver:
- MCX Gold:
- Support Levels: ₹75,000–74,740
- Resistance Levels: ₹75,660–76,000
- MCX Silver:
- Support Levels: ₹86,800–86,000
- Resistance Levels: ₹88,500–89,200
Gold’s Role as a Safe-Haven Asset Under Scrutiny
Gold has long been considered a safe-haven asset, particularly during times of geopolitical or economic uncertainty. However, as the global economic landscape evolves, this traditional view is being tested. The possibility of a ceasefire between Israel and Hezbollah is just one example of how shifting geopolitical dynamics can influence the appeal of gold.
Investors are closely monitoring not just geopolitical risks, but also broader economic factors like inflation, interest rates, and the performance of the US dollar. The ongoing US-China trade tensions, as well as developments in the global energy markets, also play a significant role in shaping gold's price action.
Outlook for Gold Prices in the Near Term
Looking ahead, experts are cautious about the immediate outlook for gold, particularly as the US dollar remains strong and geopolitical tensions ease. The potential for further fluctuations in the gold market remains high, especially as market participants await more concrete news regarding the Israel-Hezbollah conflict and broader macroeconomic indicators.
For those considering gold as a long-term investment, the current dip in prices may present an opportunity to buy. However, given the volatility in the short term, investors should remain cautious and consider waiting for a more stable market environment before making larger moves.