Gold prices slip but weak dollar and US Fed rate cut hopes limit further decline
Gold prices declined in early market trade, but the weakness of the US dollar and rising expectations of a Federal Reserve rate cut prevented a deeper fall. Experts say supportive global cues could keep downside limited while outlining strategic levels for MCX traders.
Gold prices edged lower in the latest session, reflecting cautious sentiment among traders. Despite the decline, losses were contained due to a softening US dollar. A weaker dollar generally supports gold since it makes the precious metal more affordable for buyers holding other currencies. Expectations that the US Federal Reserve may cut interest rates soon have also helped limit gold’s downside, as lower rates tend to boost demand for non-interest bearing assets.
Analysts noted that global macro conditions remain favourable for gold in the medium term. Concern over geopolitical tension, inflation uncertainty and slow economic recovery across several regions continue to draw investment into safe haven assets.
On the Multi Commodity Exchange, experts recommend a selective approach for traders. For gold, they highlighted support and resistance levels that could guide short term positions. Traders are advised to monitor intraday cues, especially movements in the dollar index and comments from US central bank officials. Silver is expected to remain volatile but may show strength if industrial demand picks up alongside global economic indicators.
Market specialists added that any confirmation of a future rate cut by the Federal Reserve could trigger renewed buying interest in both gold and silver. They also emphasised risk management given the likelihood of sharp price swings in the coming weeks.
Overall, while gold has recorded a minor drop, underlying global factors continue to offer support, suggesting that traders may see a more stable range until clearer policy signals emerge from the United States.
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