Gold Prices Decline as US Fed Cuts Interest Rates; Experts Outline Key MCX Levels for Trading

Gold prices declined in the domestic as well as international markets today on the US Federal Reserve's expected 25 basis points rate cut inciting investors to book profits. Gold for December on the Multi Commodity Exchange traded 0.06% lower at ₹77,339 per 10 grams till Friday morning amid profit booking following consecutive gains in previous sessions.

Internationally, the yellow metal declined as the outcome of the US election and the Fed's rate cut had already been priced in, which reduced new triggers for growth. With the rates cut, the focus has been concentrated on the future economical indicators, starting from the Michigan consumer sentiment data, which may alter the strategies of investors in the short run.

Experts on Gold Price Levels

Analyst Manav Modi from Motilal Oswal Financial Services noted that the yellow metal rallied to new highs ahead of the election but dumped sharply after the election of Donald Trump, which sent the dollar surging and resulted in an adjustment in the Fed's rate. That combined with a "risk-on" sentiment across markets contributed in reducing the appeal of safe-haven assets like gold.

Despite the short-term fall, analysts are optimistic about the long term prospect of gold prices as the low-interest-rate environment has been established. Colin Shah, MD of Kama Jewelry, said that further appreciation for gold is still in store since the US Federal Reserve lowers its rates. Shah predicts that eventually, gold will touch $3,000 globally and ₹86,000 in India as all economic factors will keep going to ensure a strong bullish outlook for gold continues.

MCX Gold and Silver Key Levels

Gold Support at ₹77,220 ₹76,950 Resistance between ₹77,880 to ₹78,160 levels. Silver Support between ₹91,680 to ₹90,850 Resistance between ₹92,840 to ₹93,380 levels.

Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold and silver to see some volatile movements. MCX gold further support visible near ₹77,100–76,650 and resistance near ₹77,770–78,150. Buy silver around ₹92,000, target at ₹93,500, and stop-loss around ₹91,450.

According to Kalantri and Jain, the international market allows gold and silver set support and resistance levels, and now a prediction for a cautious trading day until the more economic releases are published.

Long Term Gold Forecast

The gold prices are going to stay firm with the Fed's rate-cut cycle, coupled with the fact that geopolitical tensions have already been on high scales. For traders, it will be of utmost importance to track the support and resistance levels on MCX to take advantage of earning potential while mitigating risks in an uncertain market.