Business Business:Gold prices fell significantly in the domestic futures market on Monday morning, as investors exercised caution ahead of two key events this week: the US elections and the Federal Reserve's policy announcement. Both are expected to have a significant impact on the movement of the US dollar, bond yields and bullion prices. MCX Gold for December 5 expiry was trading 0.55 per cent lower at ₹78,430 per 10 grams around 9:25 am.In international markets, gold traded marginally higher while the dollar index declined by nearly half a percent, hitting near two-week low in the previous session. Since gold is priced in dollars globally, the weaker US currency makes gold more attractive to holders of other currencies.
Bullion hit a record high of $2,790.15 last Thursday, October 31
। MCX पSo, gold touched a record high of ₹79,775 on Wednesday, October 30. Now the focus is on Tuesday's US presidential election. Opinion polls indicate that there is a tight race between Democratic candidate Kamala Harris and Republican Donald Trump. Furthermore, the Fed's interest rate decision and Chairman Jerome Powell's remarks on Thursday are key events this week. According to reports, traders estimate a 98 percent chance of a 25 bps cut.
China is also a major factor influencing gold prices as the country is a major metal consumer. “The Standing Committee of the National People's Congress in China will meet on November 4-8, with markets widely expected to approve more fiscal stimulus measures,” said Rahul Kalantri, vice president of commodities at Mehta Equities, according to a Reuters report. Said, “A larger than expected decline in US non-farm payrolls supported gold and silver at lower levels. However, uncertainty over the US presidential elections and safe-haven demand for the dollar also contributed to some gain taking in the precious metals Is.” Kalantri estimates that gold and silver prices will remain volatile this week in view of the upcoming US presidential elections, Federal Reserve policy meetings, fluctuations in the dollar index and ongoing geopolitical tensions. “Gold is expected to take support at $2,720-$2,705, while resistance lies between $2,754-$2,770. Silver has support at $32.20-$32.00 and resistance at $32.65-$32.82. In rupee terms, gold is expected to take support at ₹78,440,” Kalantri said. -₹78,250 with support and resistance at ₹78,950-₹79,140, while silver has support at ₹94,780-₹94,150 and resistance at ₹96,000-₹96,780.”
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