Gold and silver futures climbed in early trade on Friday (November 28), supported by firm demand in the spot market and growing expectations of a US Federal Reserve rate cut in December. At around 9:05 am, MCX gold December futures were up 0.39% at ₹1,25,999 per 10 grams, while silver December futures gained 0.85% to ₹1,63,849 per kg.
The surge comes amid robust domestic demand driven by the ongoing wedding season, a softer US dollar, and rising confidence that the Federal Reserve may ease policy next month. However, analysts noted that gold has experienced intermittent volatility due to profit booking and geopolitical developments involving Russia and Ukraine.
According to the CME FedWatch tool, traders are pricing in an 87% probability of a rate cut when the Federal Open Market Committee meets on December 9–10. Meanwhile, India’s Monetary Policy Committee (MPC) is set to convene on December 3, 4, and 5.
The US dollar index is on track for its steepest weekly decline in four months, further supporting precious metal prices.
Manoj Kumar Jain of Prithvifinmart Commodity Research said that while optimism around a possible US-led Russia-Ukraine peace initiative is limiting strong upside momentum, expectations of Fed policy easing and profit-taking in the dollar are keeping gold and silver supported.
Trading Strategy
Jain expects precious metals to remain volatile through the day due to fluctuating global cues and movement in the dollar index. He recommends a buy-on-dips approach.
Gold (MCX):
- Buy range: ₹1,27,200 – ₹1,26,600
- Stop loss: Below ₹1,26,000
- Targets: ₹1,28,200 and ₹1,29,000
- Support: ₹1,27,100 and ₹1,26,600
- Resistance: ₹1,28,200 and ₹1,29,000
Silver (MCX):
- Buy range: ₹1,65,500 – ₹1,64,000
- Stop loss: Below ₹1,62,500
- Targets: ₹1,67,700 and ₹1,70,000
- Support: ₹1,64,400 and ₹1,63,500
- Resistance: ₹1,67,700 and ₹1,70,000
In international markets, Jain said gold has support at $4,160 and $4,134 per troy ounce, with resistance at $4,210 and $4,240. Silver is supported at $52.70 and $52, while resistance lies at $53.80 and $54.20.
Demand Outlook
Aksha Kamboj, Vice President of the India Bullion and Jewellers Association (IBJA), said gold demand remains strong this season. She added that gold continues to serve as a stable long-term investment, offering security amid steady foreign exchange conditions.
Kamboj believes the current environment makes gold attractive for investors seeking long-term value rather than short-term returns.
Rahul Kalantri, VP of commodities at Mehta Equities, shared similar technical levels. He places gold support at $4,130 and $4,095 and resistance at $4,205 and $4,235. For silver, he sees support at $53.10 and $52.75 and resistance at $53.95 and $54.40.
In rupee terms, Kalantri said gold has support at ₹1,25,050 and ₹1,24,380, with resistance at ₹1,26,550 and ₹1,27,100. Silver support stands at ₹1,61,250 and ₹1,59,900, while resistance is placed at ₹1,63,410 and ₹1,64,300.
