Mumbai, India — Gold prices edged lower on the Multi Commodity Exchange (MCX) on Thursday morning as a firmer US dollar and fresh signals from the Federal Reserve dampened investor optimism over near-term interest rate cuts.
At around 9:45 a.m., MCX Gold December futures were trading 0.23 percent lower at Rs 1,22,768 per 10 grams. Silver, however, moved higher, with MCX Silver up 0.39 percent at Rs 1,55,717 per kg.
Market analysts said gold faces support at Rs 1,22,200 and Rs 1,21,650, with resistance at Rs 1,23,800 and Rs 1,24,400. For silver, support lies at Rs 1,54,000 and Rs 1,52,500, and resistance at Rs 1,56,600 and Rs 1,58,000.
The US dollar index climbed to 100.30, its highest level in more than two weeks, making gold more expensive for holders of other currencies and weighing on overall demand.
Sentiment weakened further after the Federal Reserve released minutes from its October meeting on Wednesday. The minutes showed policymakers remain wary of cutting interest rates too soon, cautioning that premature easing could risk reigniting inflation.
The update has lowered expectations for a potential rate cut in December, adding pressure on gold prices. Analysts noted that gold pared earlier gains following the release of the minutes, with traders also watching delayed economic updates from Japan.
Market watchers said the minutes revealed a divided Federal Reserve that opted to cut rates last month despite concerns about jeopardizing progress on inflation, which has hovered above the 2 percent target for more than four years. They added that Chair Jerome Powell has maintained a cautious tone, emphasizing that a December rate cut is not a “foregone conclusion.” (Source: IANS)
