Gold prices lack fresh triggers; what should be your near-term strategy for yellow metal? | Stock Market News – Mint

Against a backdrop of uncertainty over the US election and the Fed's expected interest rate cuts, gold prices are looking to take profits amid a lack of new catalysts.

Domestic spot gold prices fell nearly 3% in the week ending Friday, November 8th.

MCX Gold hits record high INR79,775 per 10 grams on October 30. MCX Gold contracts of November 8 and December 5 ended at: INRThe number was 77,292, down 3.11% from the record high.

In international markets, gold prices suffered their biggest weekly decline in five months, weighed down by a strong dollar as investors assessed Donald Trump's victory and its potential impact on US policy and interest rate trends. was recorded.

On November 7, immediately after Republican Donald Trump secured an overwhelming victory in the 2024 US presidential election, the US Federal Reserve (Fed) cut interest rates by 25 basis points.

While President Trump's policies could lead to higher inflation, the Fed has signaled it will continue to rely on data, creating uncertainty over the future path of rate cuts.

As a Bloomberg report highlighted, President Trump has publicly criticized Federal Reserve Chairman Jerome Powell and is even exploring the possibility of firing him during his first term. Meanwhile, President Trump has also promised more aggressive tariffs, a crackdown on immigration and an extension of tax cuts. These policies could put upward pressure on prices and long-term interest rates, prompting the Fed to reduce interest rate cuts.

However, Chairman Powell said he did not expect the outcome of the US presidential election to have any impact on monetary policy in the short term. He also said he has no intention of resigning from his position if asked to do so by the new US president.

What is the short-term strategy for gold?

Experts don't seem bullish on gold prices in the short term.

Jateen Trivedi, research analyst vice president of commodities and currencies at LKP Securities, said inflation is trending toward the 2% target as profit-taking continues following President Trump's election victory. Combined with this, the Fed's outlook does not bring any new surprises to support gold prices.

“Gold now faces global resistance.” INR77,250- INR77,350 range, while strong short-term support levels are seen INR76,500 people,” Trivedi said.

Rahul Kalantri, vice president of commodities at Mehta Equities, said the yellow metal was hit by a sharp rise in the dollar this week following President Trump's victory, but the Fed cut interest rates on Thursday and signaled further rate cuts. As a result, the dollar has fallen from a four-month high. Further mitigation is planned.

“With most of the major events now over, analysis of recent results suggests that a 'sell on the rise' strategy can be profitable for short-term traders,” Kalantri said.

“Regarding gold price, we expect it to fall to $2,640 and $2,574 levels, while resistance is expected around $2,748. In INR, gold price could reach below There is.” INR76,400, by staying below this level. INR75,400, where resistance is expected INR78,050. Traders need to keep an eye on geopolitical developments as an escalation could push gold prices higher,” Kalantri said.

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