Gold loses shine as Fed dampens 2025 rate-cut hopes; prices tumble Rs 1,700 per 10 gm

The shine faded from gold on Thursday after the U.S. Federal Reserve tempered expectations of more rate cuts in 2025. After soaring past Rs 1.21 lakh recently, prices have eased in the past few sessions. On Thursday, MCX December gold futures slid Rs 1,671 to open at Rs 1,18,995 per 10 grams. With the Fed’s cautious tone and upcoming U.S.–China trade talks, volatility is likely to continue. Fed Chair Jerome Powell also warned that additional rate cuts were not assured, pointing to disruptions in economic data due to the government shutdown and sharp divisions among the 19 Fed policymakers.

Meanwhile, silver December futures on the MCX also opened lower, slipping Rs 1,444, or 1%, to Rs 1,44,637 per kilogram.

Internationally, gold prices edged higher on Thursday, supported by a slight pullback in the U.S. dollar and a widely expected 25-basis-point rate cut by the Federal Reserve.Spot gold rose 0.4% to $3,942.97 per ounce as of 0050 GMT, while U.S. gold futures for December delivery slipped 1.1% to $3,955 per ounce.
On Wednesday, both gold and silver settled higher in domestic and international markets. Gold December futures closed at Rs 1,20,666 per 10 grams, up 0.85%, while silver December futures ended at Rs 1,46,081 per kilogram, gaining 1.20%.

“Gold and silver gained in early trade and briefly crossed $4,000 and $48 per troy ounce, respectively, but came off day’s highs after the Fed Chairman’s hawkish comments on December rate cuts,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.The Fed cut interest rates by 25 basis points to 4.0% in its policy meeting concluded Wednesday. However, Fed Chair Jerome Powell signaled uncertainty over another rate cut before year-end, triggering profit-taking in gold and silver amid optimism around a potential U.S.–China trade deal.
Jain noted that gold is currently holding its key support level of $3,870 per ounce, while silver is maintaining support at $46.50 per ounce on a closing basis.

The U.S. Dollar Index (DXY) was hovering near 99.02, down 0.20 points or 0.20%.

“We expect gold and silver prices to remain volatile this week amid fluctuations in the dollar index, the ECB policy meeting, and the proposed US-China presidential talks. Gold is expected to trade in the range of $3,870-4,280 per troy ounce, while silver may move between $45.50–51.50 per ounce,” Jain added.

Gold: Support at Rs 1,19,400-1,18,000; resistance at Rs 1,21,750-1,23,000

Silver: Support at Rs 1,44,000-1,42,400; resistance at Rs 1,47,750-1,49,200

Jain advised investors to avoid fresh buying in gold and silver during Thursday’s session ahead of the U.S.–China meeting.

Delhi:
22-carat: Rs 91,120
24-carat: Rs 98,024

Mumbai:
22-carat: Rs 91,048
24-carat: Rs 97,928

Chennai:
22-carat: Rs 90,176
24-carat: Rs 97,008

Hyderabad:
22-carat: Rs 90,408
24-carat: Rs 97,192

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)