Gold Prices Today: Precious metal prices to stay elevated following Fed Powell's speech, US macro data in focus

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Gold touched a two-week high on December 1 in the international markets, supported by a weaker dollar after US Federal Reserve Chair Jerome Powell's speech sparked expectations of smaller interest rate hikes ahead.

Spot gold rose 0.4 percent to $1,774.62 per ounce, as of 0241 GMT, and hit its highest level since November 16. US gold futures climbed 1.6 percent to $1,788.70.

At 10.05 am, gold contracts were trading 0.67 percent higher on the Multi-Commodity Exchange (MCX) at Rs 52,830 for 10 grams. Silver jumped 1.73 percent at Rs 63,319 a kilogram.

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Gold and silver futures prices are trading solidly higher today following a dovish speech on interest rates by Federal Reserve's Jerome Powell on Wednesday. Consequently, a weaker dollar has kept the gold price on track for its best month since May 2021. Gold prices gained 7% in November. Besides, precious metals also got support due to weak US labour market data. The dollar index showed its biggest monthly fall since 2010 and supported global commodity prices.

Gold has support at $1764-1754 while resistance is at $1788-1795. Silver has support at $21.88-21.62, while resistance is at $22.48-22.71. In rupee terms gold has support at Rs 52,280-51,950, while resistance is at Rs 52,650, 52,880. Silver has support at Rs 61,650-60,980, while resistance is at Rs 62,920–63,440.

COMEX Gold trades half a percent higher in today’s early session after 1% increase in the previous session. COMEX Gold inched up by 8.71% in the month of November gaining after straight seven months of fall. The jump in yesterday’s session was on the back of the US Fed Chair Jerome Powell’s speech that cemented the smaller rate hike expectation in their upcoming policy meetings.

Although the smaller rate hike expectation has propped up gold prices, the gains may be capped as there is still no indication of an end point to the rate hikes. The focus will now shift to the US non-farm payrolls print later this week. The near-term outlook remains positive. However, traders will watch for the data prints to take further cues.

The yellow metal on Wednesday inched higher, continuing its positive momentum for yet another day, as it gained over 1 percent and concluded at 1768.5$ per ounce. After US Federal Reserve Chair Jerome Powell's speech reaffirmed expectations of lower interest rate hikes, the bullion witnessed gains and scaled two-week highs.

Lower interest rates tend to boost bullion's appeal as the it reduces the opportunity cost of holding the non-yielding asset, which ended November nearly 8% higher, its biggest monthly gain since July 2020. Gold prices might stay elevated on the back of slowing pace of interest rate hikes, however, increasing interest rates would limit the upside.