The gold market is buzzing with excitement! Gold prices are on the rise, and it's all thanks to the US dollar's recent weakness. But what's the story behind this surge? Let's dive in and explore the fascinating world of precious metals trading.
On Thursday morning, November 13th, the gold and silver rates in the domestic futures market climbed as the US dollar took a dip. This shift occurred after US lawmakers passed a temporary funding bill to end the historic federal shutdown. The MCX gold December contracts reflected this change, rising by 0.37% to ₹1,26,935 per 10 grams around 9:35 am. Silver followed suit, with MCX silver December futures up by 1.70% at ₹1,64,854 per kg.
But here's where it gets interesting: the dollar index hovered around 99.5, with investors eagerly awaiting the release of US economic data after the shutdown. And this is the part most people miss—the shutdown's impact on the dollar and, consequently, on gold prices.
US President Donald Trump signed the funding bill on Wednesday night, ending a 43-day shutdown that left federal workers unpaid and caused chaos at airports and food banks. Market participants are now eagerly anticipating the incoming data, which is expected to support the US Federal Reserve's decision to cut rates in December.
According to Reuters, economists emphasize the importance of timely data release. They suggest that the US Labor Department should prioritize November's employment and inflation data to ensure the Fed has the most up-to-date information for their December policy meeting.
Rahul Kalantri, VP Commodities at Mehta Equities, offers a fascinating insight: "Despite the imminent reopening of the US government, precious metals are holding strong. Traders believe that the release of US economic data could further bolster the case for a December Fed rate cut, giving the market an extra boost."
Key Levels to Watch:
Kalantri highlights a bullish trend in the near-term technical postures for gold and silver. This has attracted chart-based speculators, who are now betting on the long-term prospects of these metals.
Kalantri explains, "Gold has broken through the $4,000 per troy ounce barrier and is now above $4,150. Silver, too, has held its ground at $50.00 and is trading above $52. Gold's support levels are $4,140 and $4,100, with resistance at $4,240 and $4,265. Silver enjoys support at $52.50 and $52.10, while resistance lies at $53.75 and $54.20."
In Indian rupees, Kalantri provides the following support and resistance levels: gold has support at ₹1,25,750 and ₹1,24,980, with resistance at ₹1,27,750 and ₹1,28,400. Silver's support is at ₹1,60,950 and ₹1,59,400, and resistance is at ₹1,63,850 and ₹1,64,900.
Jigar Trivedi, a Senior Research Analyst at Reliance Securities, predicts that MCX gold December will maintain its positive momentum, with ₹1,27,000 per 10 grams as the resistance for the day.
As the market fluctuates, investors are advised to stay informed and consult experts for guidance. Will the gold market continue its upward trajectory? What impact will the US economic data have on the Fed's decision? Share your thoughts and predictions in the comments below!
