Fri Nov 08 11:28:35 UTC 2024: ## Gold Prices Dip on Profit Booking After Fed Rate Cut

**MUMBAI, INDIA** – Gold prices saw a decline in both domestic and international markets on Friday morning as profit booking took place following the US Federal Reserve’s expected interest rate cut.

MCX Gold for December 5 traded 0.06 percent lower at ₹77,339 per 10 grams, while internationally, gold prices also fell due to a lack of fresh market triggers.

The Fed’s decision to cut rates by 25 basis points, combined with the conclusion of the US elections, has left traders and investors analyzing the impact of Donald Trump’s presidency on future US interest rates.

Gold had reached record highs in the lead-up to the elections but dropped more than 3 percent following Trump’s victory, attributed to the US dollar’s rally to a four-month high. The clear outcome of the elections, however, cleared a major point of uncertainty for global markets, triggering a risk-on rally across asset classes and putting pressure on safe-haven assets like gold.

Analysts are cautiously optimistic about gold’s future prospects, citing the start of a rate cut cycle. Colin Shah, MD of Kama Jewelry, highlights the low-interest rate environment created by the Fed’s recent cuts and anticipates a similar move by the Reserve Bank of India next month, further boosting gold’s appeal.

Experts expect gold prices to remain elevated in the long term, fueled by the low-interest rate environment and geopolitical tensions. Some analysts predict gold will reach $3,000 globally and ₹86,000 in India.

However, gold prices are expected to remain volatile in the near term due to upcoming economic data releases, including the US consumer sentiment index.

Analysts at Mehta Equities, Prithvifinmart Commodity Research, and Motilal Oswal Financial Services have provided specific price support and resistance levels for both gold and silver in both international and domestic markets.

**Disclaimer**: This news article provides a summary of market analysis and expert opinions. It is not intended as investment advice. Investors should consult with certified professionals before making any investment decisions.

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