Gold under pressure as Fed signals spark of volatility. Should traders be worried?
Silver prices followed suit as the white metal also opened on a softer note, falling by Rs 787 or 0.53% to Rs 1.48,053/kg in early trade.
Internationally, gold prices edged up on Friday and were on track for a third straight monthly gain as bargain hunting and a Federal Reserve interest rate cut boosted demand while investors digested an attempted China-U.S. trade deal.
Spot gold was up 0.3% at $4,034 an ounce as of 01:09 GMT. U.S. gold futures for December delivery fell 1.1% to $3,955 an ounce.
Bullion has gained 4.5% so far this month. Traders cut bets that the Fed will cut rates again at its next meeting on Dec. 10 after remarks by Fed Chairman Jerome Powell.
Markets are now pricing in a 74.8% chance of a 25 basis point cut from the Fed in December, compared with a 91.1% chance a week ago, according to CME Group’s FedWatch tool. Gold and silver settled in a positive mood on the domestic and international markets on Thursday. The December gold futures contract settled at Rs 1,21,508 per 10 grams with a gain of 0.70% and the December silver futures settled at Rs 1,48,840 per kg with a gain of 1.89%. Gold and silver extended gains in a highly volatile session despite hawkish comments from the Fed on December’s key rate cut and strength in the dollar index. The dollar index surpassed 99 marks and is trading at 3-month highs after the results of the Fed meeting.
Today, the US dollar index DXY was hovering near the 99.46 mark, down 0.07 or 0.07%.
The ECB left interest rates unchanged and could limit gains in the dollar index and support gold and silver prices.
“According to the WGC, record purchases by global central banks of 220 metric tons in the third quarter of 2025 and a 28% increase from the previous quarter are also supporting precious metal prices,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.
“Gold is holding its make-or-break level of $3,870 and silver is also holding a support level of $46.50 per troy ounce on a closing basis. We expect gold and silver prices to remain volatile in today’s session due to dollar index volatility, European inflation data and US-China trade agreement updates, and gold is expected to trade in a range of $45 to $48 to $480 for silver, 09. are trading in the range of $47.70-49.50 per troy ounce in today’s session,” he added.
How to trade gold?
Manoj Kumar Jain suggested the following ranges for gold and silver on MCX:
- Gold has support at Rs 1,20,650-1,19,800 and resistance at Rs 1,22,200-1,23,100
- Silver has support at Rs 1,47,700-1,46,500 and resistance at Rs 1,50,150-1,51,500
Jain suggests buying on dips in gold and silver until it holds its key support level of $3,870 and $46.50 to close. Gold is likely to test Rs 1,24,000 and silver could also test Rs 1,52,500 in the short term.
Gold rates on physical markets
Gold price today in Delhi
Standard gold (22 carat) prices in Delhi are Rs 91,344/8 grams, while pure gold (24 carat) prices are Rs 98,264/8 grams.
Gold price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 90,896/8 grams, while pure gold (24 carat) prices stand at Rs 97,696/8 grams.
Gold price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 90,496/8 grams, while pure gold (24 carat) prices are Rs 97,344/8 grams.
Gold price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 90,408/8 grams, while pure gold (24 carat) prices stand at Rs 97,216/8 grams.
(Disclaimer: Recommendations, suggestions, views and opinions of experts are their own. These do not represent the views of The Economic Times)