Gold and silver prices edged higher in early Thursday trade on the Multi Commodity Exchange (MCX) as the US dollar weakened after lawmakers passed a temporary funding bill, ending the record 43-day US federal shutdown.
At 9:35 a.m., MCX gold December futures were trading 0.37% higher at ₹1,26,935 per 10 grams, while MCX silver December contracts jumped 1.70% to ₹1,64,854 per kg.
Dollar Weakness Boosts Precious Metals
The US dollar index hovered near 99.5, as investors awaited fresh US economic data following the reopening of federal operations. The shutdown, which began on October 1, left government employees unpaid and disrupted services nationwide.
US President Donald Trump signed the funding bill late Wednesday (local time), restoring temporary government operations.
Market sentiment turned positive as traders expect upcoming US economic data to bolster prospects of a Federal Reserve rate cut in December.
“Despite the reopening of the US government, the ongoing strength in precious metals shows traders anticipate a December rate cut that could further support gold and silver prices,” said Rahul Kalantri, VP of Commodities at Mehta Equities.
Key Technical Levels to Watch
According to Kalantri, both gold and silver have turned technically bullish, drawing interest from momentum traders and speculators.
Gold (International Market):
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Support: $4,140 and $4,100 per troy ounce
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Resistance: $4,240 and $4,265 per troy ounce
Silver (International Market):
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Support: $52.50 and $52.10 per troy ounce
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Resistance: $53.75 and $54.20 per troy ounce
In the domestic market (INR):
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Gold support: ₹1,25,750 and ₹1,24,980
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Gold resistance: ₹1,27,750 and ₹1,28,400
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Silver support: ₹1,60,950 and ₹1,59,400
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Silver resistance: ₹1,63,850 and ₹1,64,900
“MCX gold December may trade with a positive bias, with ₹1,27,000 per 10 grams acting as near-term resistance,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities.
Market Outlook
Experts believe that a softer US dollar, rate cut expectations, and safe-haven demand will likely keep gold prices supported in the short term. Meanwhile, investors are advised to monitor Fed signals, US inflation data, and global risk sentiment for further cues.
