Gold rate today: Gold rises Rs 1,200 to hit Rs 1,22,290 per 10 grams – what should investors do?
Gold rate today: Gold prices are rallying again with MCX December futures surging by Rs 1,223, a rise of 1% to hit Rs 1,22,290 per 10 grams on Monday. This increase was attributed to heightened safe-haven demand following disappointing US consumer sentiment data and underwhelming employment figures.Silver futures on the MCX demonstrated robust performance, increasing by Rs 2,872 or 1.94% to Rs 1,50,600 per kilogram. The precious metal followed gold’s positive trajectory, benefiting from increased safe-haven interest.In global markets, spot gold increased by 0.7% to $4,027.88 per ounce at 0115 GMT. The US gold futures for December delivery registered a 0.7% increase to $4,036.60 per ounce.October saw a decline in US employment, particularly in government and retail sectors. The situation was further affected by corporate cost-reduction measures and increased adoption of artificial intelligence (AI), resulting in numerous announced redundancies, according to last week’s data.A survey released on Friday indicated that US consumer sentiment declined to its lowest point in almost 3-1/2 years in early November. This decrease was attributed to concerns regarding economic implications of the longest US government shutdown in history, consequently strengthening the safe-haven appeal of precious metals.Market analysts indicate a 67% probability of a Federal Reserve rate reduction in December, based on CME FedWatch Tool data. Gold, being a non-yielding asset, typically performs well during periods of low interest rates and economic instability, according to an ET report.Friday’s trading saw positive closures for gold and silver in domestic and international markets. The December gold futures finished at Rs 1,21,067 per 10 grams, rising 0.38%, whilst silver futures for December ended at Rs 1,47,728 per kilogram, gaining 0.45%.Both precious metals demonstrated significant price fluctuations but recovered following disappointing US consumer sentiment figures and ongoing uncertainty regarding the US government shutdown resolution.The dollar index declined from its peak due to the US shutdown, providing support to precious metal valuations. Currently, the US Dollar Index (DXY) stands near 99.64, showing a modest increase of 0.04 or 0.04%.“Gold is holding its make-or-break level of $3,870 and silver is also holding its support level of $45.50 per troy ounce on a weekly closing basis. We expect gold and silver prices to remain volatile this week amid volatility in the dollar index, volatility in the global financial markets, ahead of the US inflation data and uncertainty on the ending US shutdown and gold are expected to trade in the range of $3,870-4,140 per troy ounce and silver is expected to trade in the range of $45.50-50.50 per troy ounce this week,” said Manoj Kumar Jain of Prithvifinmart Commodity Research according to the ET report.
How should you trade gold?
According to Manoj Kumar Jain’s analysis, the MCX trading parameters are:Gold displays support levels at Rs 1,20,550-1,20,100, whilst facing resistance at Rs 1,21,660-1,22,200. For silver, the support levels stand at Rs 1,46,800-1,45,500, with resistance points at Rs 1,49,200-1,50,150.The recommended approach is to accumulate both gold and silver during price declines, provided they maintain their respective support thresholds of Rs 1,17,700 and Rs 1,44,000 at daily market closure.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)
