Gold prices fell in early trading in Asia on Tuesday, following a six-week peak the previous session, as investors booked gains ahead of comments from the Federal Reserve chairman and key economic data on interest rate cuts.Internationally, spot gold fell 0.2% to $4,222.93 an ounce, as of 0024 GMT, after hitting its highest level since Oct. 21 on Monday. U.S. gold futures for December fell 0.4% to $4,256.30 an ounce.
According to CME’s FedWatch tool, US interest rate futures factor in an 88% chance of a rate cut in December. Like US President Donald Trump, Hassett believes that interest rates should be lower.
Non-yielding gold tends to perform well in low interest rate environments.
Investors are also focusing on key data this week, including Wednesday’s November ADP employment numbers and the delayed September Personal Consumption Expenditures (PCE) Index, the Fed’s preferred inflation gauge, due Friday.
The US Dollar Index, DXY, hovered around 99.43 and gained 0.02, or 0.02%, on Tuesday.
“With Fed expectations for rate cuts strengthening and US debt levels near historic peaks, safe-haven demand has remained robust. The pace of gold’s recovery continues to deliver upside surprises even as hopes for peace between Russia and Ukraine emerge – reflecting the strong positioning of global central banks and institutional buyers,” said Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities.
Trivedi believes that gold can continue trading in a wider positive range between Rs 1,28,000 and Rs 1,34,000.
Another commodity expert, Rahul Kalantri, VP Commodities at Mehta Equities, stated that gold has support at Rs 1,29,650-1,28,850, while resistance is at Rs 1,31,450-1,32,100.
Further, silver has support at Rs 1,80,750-1,79,200 while resistance is seen at Rs 1,83,110, 1,84,300.
Gold rates in physical markets
Gold Price Today in Delhi
The standard gold price (22 carat) in Delhi is Rs 94,928/8 gram, while the price of pure gold (24 carat) is Rs 1,02,176/8 gram.
Gold Price Today in Mumbai
The standard gold price (22 carat) in Mumbai is Rs 94,944/8 gram, while the price of pure gold (24 carat) is Rs 1,02,192/8 gram.
Gold Price Today in Chennai
The standard gold price (22 carat) in Chennai is Rs 94,400/8 gram while the price of pure gold (24 carat) is Rs 1,01,560/8 gram.
Also read: Silver rises to record Rs 1,78,649. What has driven the rally and how close is the target of Rs 2 lakh?
Gold Price Today in Hyderabad
The standard gold price (22 carat) in Hyderabad is Rs 94,576/8 gram, while the price of pure gold (24 carat) is Rs 1,01,768/8 gram.
(Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of The Economic Times)
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