The price of gold dipped slightly in early trade today, pulling back from recent gains. The pressure on the yellow metal comes as the US Dollar Index surged past the critical 100 mark and the latest minutes from the Federal Reserve dampened expectations for an interest rate cut in December.
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On the Multi Commodity Exchange (MCX), Gold Price Today for the December futures contract was trading $0.23\%$ lower at тВ╣1,22,768 per 10 grams around 9:15 am. Interestingly, Silver showed resilience, with the MCX Silver contract gaining $0.39\%$ to trade at тВ╣1,55,717 per kg at the same time.
Why is the Gold Price Falling Today?
Two key factors are currently weighing heavily on gold’s value: the strong dollar and cautious comments from the US Federal Reserve.
1. The Dollar Effect: A Headwind for Gold
The US Dollar Index (DXY) rose to $100.30$, hitting an over two-week high. This strengthening dollar makes gold, which is priced in US currency, more expensive for investors holding other currencies, naturally reducing demand. In simple terms, when the dollar is strong, the Gold Price Today tends to struggle.
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2. Fed Minutes Chill Rate Cut Bets
Expectations of a US Federal Reserve interest rate cut are fading, which exerts downward pressure on gold prices. The minutes from the Fed’s October meeting, released on Wednesday, revealed that policymakers are increasingly cautious. They hinted that cutting rates too soon could raise the risk of pushing inflation higher again.
This has shifted market sentiment dramatically. According to the CME Group’s FedWatch tool, the market now sees only a $33\%$ chance of a rate cut at the Fed’s December 9-10 meeting. This is a noticeable drop from a $49\%$ probability just yesterday.
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Expert Analysis on Precious Metals
Rahul Kalantri, VP of Commodities at Mehta Equities, commented on the market movements, noting that precious metals pared gains from their session peaks due to the strength of the US dollar and a lack of consensus among Federal Reserve officials regarding a potential December rate cut.
Kalantri further elaborated on the Fed’s conflicting signals:
“The FOMC minutes highlighted rising concerns over the US employment outlook alongside lingering inflation pressures, resulting in mixed views on future policy action. Nonetheless, geopolitical and economic uncertainties continue to bolster safe-haven buying.”
Also Read: Gold Eases as Dollar Gains, Traders Dial Back US Rate Cut Bets
Key Trading Levels to Watch for Gold and Silver
Investors should monitor these technical support and resistance levels for Gold Price Today in the immediate term:
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ЁЯУИ International (COMEX) Levels:
| Metal | Support | Resistance |
| Gold (Spot) | $\$4,035 \text{ and } \$4,000$ | $\$4,115 \text{ and } \$4,140$ |
| Silver (Spot) | $\$51.10 \text{ and } \$50.65$ | $\$52 \text{ and } \$52.30$ |
ЁЯЗоЁЯЗ│ MCX (INR) Levels:
| Metal | Support | Resistance |
| Gold (MCX) | тВ╣1,22,350 \text{ and } тВ╣1,21,680$ | тВ╣1,23,650 \text{ and } тВ╣1,24,200$ |
| Silver (MCX) | тВ╣1,53,850 \text{ and } тВ╣1,52,500$ | тВ╣1,56,440 \text{ and } тВ╣1,57,580$ |
Manoj Kumar Jain of Prithvifinmart Commodity Research offered similar technical perspectives, adding:
COMEX Gold: Support at $\$4,054 \text{ and } \$4,034$; Resistance at $\$4,110 \text{ and } \$4,140$.
MCX Gold: Support at тВ╣1,22,200 \text{ and } тВ╣1,21,650$; Resistance at тВ╣1,23,800 \text{ and } тВ╣1,24,400$.
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