Gold prices decline despite US inflation data, global bullish cues.

Gold prices in the domestic futures market went down on Thursday morning even as international markets sent bullish signals after the US published its inflation data. The statistics, which were in line with expectations, have boosted hopes for a 25 basis points cut by the US Federal Reserve next week when it holds its Federal Open Market Committee meeting on December 17-18.

Gold Price Today: Domestic and International Trends

Gold prices in the international market increased for the fifth successive session, nearing a two-week high. Investors’ reaction to the US Consumer Price Index report is said to be a reason behind this surge. The CPI surged to 2.7% in November from 2.6% in October, marking the biggest monthly increase since August, when food prices and other factors sent inflation higher.

Gold for February 5 expiry traded 0.25% lower at ₹78,804 per 10 grams at 9:15 AM on the Multi Commodity Exchange (MCX). Domestic futures declined partly due to profit booking by investors and a strong US dollar that makes gold costlier in other currencies.

MCX Gold Support and Resistance Levels

Manoj Kumar Jain of Prithvifinmart Commodity Research has suggested a buy strategy for MCX Gold on dips around ₹78,750 with a stop loss at ₹78,440 and a target at ₹79,400. Silver also has shown some potential with a buy suggested around ₹95,200, stop loss at ₹94,400, and a target at ₹96,800.

Key levels for gold and silver

Gold: Support at ₹78,770-₹78,480; resistance at ₹79,330-₹79,650

Silver: Support at ₹95,150-₹94,400; resistance at ₹96,650-₹97,350

International Markets:

– Gold: Support levels at $2,734-$2,722/oz; resistance levels at $2,782-$2,804/oz

– Silver: Support levels at $32.66-$32.40; resistance levels at $33.30-$33.64

US Inflation and Rate Cut Expectations Commodity Market News

Inflation in the US has become another boost in expecting a rate cut next week from the Federal Reserve, this will be the third attempt at trying to cool down pressures within the labor market with increasing inflation. Among other things, a dollar index has helped bring gains into gold as both of them inversely react to demand for gold.

Rahul Kalantri, VP of commodities at Mehta Equities, highlighted the broader factors influencing gold’s outlook. These include ongoing geopolitical tensions, central bank purchases, and discussions around potential stimulus measures by China.

Strategic Insights for Traders

Kalantri’s technical analysis:

– Gold: Support between $2,688-$2,670; resistance between $2,722-$2,738

– Silver: Support at $31.65-$31.47; resistance at $32.20-$32.40

In INR terms:

– Gold: Support at ₹78,780-₹78,540; resistance at ₹79,290-₹79,500

– Silver: Support at ₹95,050-₹94,480; resistance at ₹96,450-₹96,940

Gold Price India: Trends in Turbulence

Though domestic is weak, long-term view is optimistic about gold, because uncertainty will prevail worldwide. Trading and investment guidance are: be vigilant on the trends from overseas, dollar fluctuations, and outcome from FOMC.

Gold and commodity prices at this end of the year, show the endurance with which gold continues to emerge as an attractive hedge against inflation and geopolitics risks.