Gold Prices Surge 1% Ahead of US Inflation Data: Key Levels and Expert Strategies

Gold Prices Today: Rates Jump 1% Ahead of US Inflation Data; Key Levels and Trading Strategies

Gold prices rose nearly 1% in domestic futures markets on Wednesday morning as investors awaited November’s US inflation data, which could offer hints about the Federal Reserve’s next move on interest rates. Geopolitical tensions and strong demand in the domestic spot market also pushed prices higher.

On the Multi Commodity Exchange (MCX), gold futures for February 5 expiry traded 0.70% higher at ₹78,885 per 10 grams around 9:15 AM. Meanwhile, global gold prices reached a two-week high ahead of the US Consumer Price Index (CPI) data release.

The CPI is expected to show a rise of 2.7% for November, slightly higher than October’s 2.6%. Producer Price Index (PPI) data, expected on Thursday, is forecasted at 2.5% compared to 2.4% the previous month. These figures are critical as they may influence the Federal Reserve’s monetary policy decision on December 18.

Market experts anticipate the Fed will cut interest rates by 25 basis points next week. However, the central bank could pause rate cuts in January due to concerns over inflation risks.

Geopolitical updates, such as Israeli military strikes on strategic sites in Syria, also supported gold prices.

Expert Advice and Key Levels for Gold

Experts believe gold and silver prices will remain volatile ahead of the US inflation data. They suggest caution, as recent price rallies could lead to profit booking.

• Jateen Trivedi, LKP Securities:
  The overall outlook for gold remains bullish, but traders should set strict stop-loss levels near ₹77,250 on MCX. On the Comex, $2,540 serves as strong support.

• Rahul Kalantri, Mehta Equities:
  • Gold: Support levels at $2,684-$2,667 and resistance at $2,714-$2,728.
    In INR, support is at ₹78,080-₹77,840, and resistance is at ₹78,690-₹78,940.
  • Silver: Support at $31.80-$31.65 and resistance at $32.22-$32.40. In INR, support is at ₹94,850-₹94,080, with resistance at ₹96,300-₹96,940.

• Manoj Kumar Jain, Prithvifinmart Commodity Research:
  • Gold Strategy: Buy above ₹78,400 with a stop loss at ₹78,140 for a target of ₹79,000.
  • Silver Strategy: Buy around ₹95,200 with a stop loss at ₹94,450 for a target of ₹96,600.
  • Key Levels:
    • Gold: Support at $2,700-$2,684 and resistance at $2,747-$2,762. On MCX, support is at ₹78,000-₹77,770, with resistance at ₹78,700-₹79,000.
    • Silver: Support at $32.40-$32.15 and resistance at $33.00-$33.30. On MCX, support is at ₹94,850-₹94,100, with resistance at ₹96,200-₹96,850.

Investors are advised to stay alert and follow these key levels and strategies for trading in gold and silver.

Also Read: Gold and Silver Rates (10-12-2024)

Frequently asked questions