Gold prices surge on MCX as the dollar weakens; experts pinpoint crucial levels to monitor
Gold and silver prices experienced a surge in the domestic futures market on Thursday morning (November 13), coinciding with a decline in the US dollar following the passage of a temporary funding bill by US lawmakers to end the federal shutdown. MCX gold December contracts rose by 0.37% to ₹1,26,935 per 10 grams around 9:35 am, while MCX silver December futures climbed 1.70% to ₹1,64,854 per kg at the same time.
The dollar index hovered near 99.5 as investors awaited the release of US economic data following the end of the longest-ever US government shutdown. US President Donald Trump signed a funding bill on Wednesday night (local time), bringing an end to a record 43-day shutdown that began on October 1, leaving federal workers unpaid, stranding travellers at airports, and causing long lines at food banks.
Market participants anticipate that incoming data will support bets on a US Federal Reserve rate cut in December. According to Reuters, economists suggest that the US Labor Department's statistical agency should prioritize the production of November employment and inflation data to ensure Fed members have the latest information at their December policy meeting.
Rahul Kalantri, VP Commodities at Mehta Equities, notes that the ongoing strength in precious metals has persisted despite expectations of a swift government reopening within 24 hours. He observes that traders anticipate the resumption of US economic data could reinforce prospects for a December Fed rate cut, providing additional momentum to the market.
Kalantri highlights that the near-term technical postures for gold and silver have become more bullish, enticing chart-based speculators to take long positions in both markets.
Gold has reached a critical level of $4,000 and crossed $4,150 per troy ounce, while silver has surpassed its key support level of $50.00 per troy ounce and reached $52 per troy ounce, demonstrating strength. Gold finds support at $4,140 and $4,100, with resistance at $4,240 and $4,265. Silver has support at $52.50 and $52.10, with resistance at $53.75 and $54.20.
In INR, gold has support at ₹1,25,750 and ₹1,24,980, with resistance at ₹1,27,750 and ₹1,28,400. Silver has support at ₹1,60,950 and ₹1,59,400, with resistance at ₹1,63,850 and ₹1,64,900.
Jigar Trivedi, Senior Research Analyst at Reliance Securities, predicts that MCX gold December may maintain a positive undertone, with ₹1,27,000 per 10 grams as the resistance for the day.
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Disclaimer: This article is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. Investors are advised to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
