Gold prices slipped slightly as a stronger US dollar weighed on the metal, with investors eagerly awaiting clues from the Federal Reserve’s upcoming policy minutes and key US jobs data. Silver held steady, while platinum and palladium also edged lower.
Factors Driving the Price Movement
Investors are nervous, as expectations of a Federal Reserve interest rate cut in December have cooled. Recent hawkish statements from Fed officials, combined with limited US economic data over the past weeks, have reduced the anticipated probability of a rate cut from nearly 60% to 43%. This has contributed to gold and silver facing their fourth straight session of losses.
Important Support and Resistance Levels
| Metal | Support Level | Resistance Level |
|---|---|---|
| Gold (International) | $3,950 per oz | $4,050 per oz |
| Gold (India) | ₹1,20,000 per 10 gm | ₹1,22,000 per 10 gm |
| Silver (International) | $47–48.5 per oz | $50.5 per oz |
| Silver (India) | ₹1,50,000 per kg | ₹1,53,500 per kg |
Gold has already dipped below the key $4,050 level, with the next support around $3,950. Silver’s next support levels lie near $48.5 and $47 after falling beneath the $50 mark.
Investor Outlook and Longer-term Drivers
Experts highlight that gold investors should closely watch upcoming US labor market data and the Fed’s meeting minutes for fresh direction. A softer jobs report or a dovish Fed stance could revive gold’s appeal by lowering real interest rates. On the other hand, strong employment numbers or persistent inflation might delay rate cuts, putting a cap on gold’s near-term gains.
Meanwhile, long-term fundamentals remain robust. Central banks worldwide continue to be the largest buyers of gold, steadily increasing reserves for diversification. Geopolitical uncertainties and global shifts in reserves also support the metal’s value over time. Investors are encouraged to focus beyond short-term price swings and consider these broader trends.
Read Also : Gold Price Crashes! New 24K & 22K Rates in Top Cities-Big Drop Shocks Buyers
FAQs
Q1: Why did gold prices fall recently?
Gold prices dropped mainly due to expectations fading for a Federal Reserve rate cut, driven by hawkish Fed comments and strong US data.
Q2: What are the key support levels for gold and silver?
Gold’s key support is around $3,950 per ounce globally and ₹1,20,000 per 10 grams in India. Silver’s support lies near $47–48.5 internationally and ₹1,50,000 per kg domestically.
Q3: Should investors buy gold during this dip?
While short-term volatility exists, long-term demand driven by central bank purchases and geopolitical concerns supports gold as a good investment.
