Gold slips from 5-week high, on track for weekly gain ahead of potential US Fed interest rate cut | Stock Market News

Gold Prices Today: The yellow metal declined in global markets on Friday, December 13, after bullion hit a more than five-week high in the previous session and as the US dollar gained, but prices were on track for a weekly gain, driven by expectations of an interest rate cut by the US Federal Reserve next week.

Spot gold was last down 0.8 per cent at $2,658.89 per ounce, as the US dollar index hovered near its highest in more than two weeks. Bullion hit its highest since November 6 in the previous session and has risen nearly one per cent so far on the week. US gold futures last dropped 1.1 per cent to $2,678.50. 

Also Read: Gold price today: Rates decline on profit booking as US inflation rises in Nov; experts unveil strategy for MCX Gold

Spot silver fell 1.7 per cent to $30.42 per ounce. Platinum lost 1.1 per cent to $919.85, while palladium shed 1.3 per cent to $957.35. All three precious metals were set for weekly losses. Back home, gold futures last traded 0.01 per cent lower at ₹77,130 per 10 grams on the multi-commodity exchange (MCX).

Gold set for weekly gain: What’s driving the yellow metal?

-Underpinned by easing monetary policies, robust central bank buying, and safe-haven demand, gold has shattered multiple record peaks this year. Traders now see a 97 per cent chance of a 25 basis point rate cut at the US Fed’s December 17-18 meeting.

-The focus will also be on US Fed Chair Jerome Powell’s commentary as market participants analyse US monetary policy for 2025, especially in light of US President-elect Donald Trump’s tariff plan, which economists say would stoke further inflation.

-Central banks typically keep interest rates elevated to curb inflation, increasing the opportunity cost of holding non-yielding bullion. Analysts see a stronger US economy next year, which should likely leave less room for interest rate cuts and thus bring less tailwinds for the yellow metal.

Also Read: Gold & Silver Outlook: After a record-breaking year, will precious metals retain shine in 2025? What analysts say

Where are gold prices headed?

Analysts noted gold witnessed a sharp sell-off as profit booking intensified following mixed signals from US economic data. While the PPI data came in lower, higher weekly jobless claims prompted a retreat in gold prices from $2,710 to $2,670 on Comex. 

“Similarly, MCX Gold tumbled from ₹79,000 to ₹77,450, marking a drop of over ₹1,500 since yesterday. The current weakness suggests a potential trading range of ₹76,000– ₹78,000 in MCX, with the short-term outlook remaining cautious amid ongoing market volatility,” said Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities.

Also Read: US inflation rises 2.7% YoY in November, logs highest gain in seven months; Wall Street awaits US Fed verdict

Hotter-than-expected PPI data increased worries about US FED rate cuts and triggered selling in precious metals. After the PPI data, the dollar index gained, pushing gold and silver prices lower. However, jobless claims surged last week to 2,42,000, which could support the prices of precious metals. 

“Gold has support at $2670-2655 while resistance at $2705-2720. Silver has support at 30.80-30.65 while resistance is at $31.22-31.40. In INR gold has support at ₹77,710-77,540, while resistance at ₹78,280-78,440. Silver has support at ₹91,850-91,080, while resistance at ₹93,300-93,940,” said Rahul Kalantri, VP of Commodities, Mehta Equities Ltd.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.