MCX Gold and Silver prices dip on profit booking spree; check the prices here

Mumbai (The Uttam Hindu): Gold and silver prices declined on Monday's trading session on the Multi Commodity Exchange (MCX) as traders resorted to profit booking after the recent rally.

The decline was seen amid weak demand in the spot market. However, a weakening US dollar and investors' hopes of a US Federal Reserve interest rate cut this week limited the decline. MCX gold February futures were trading 0.04 percent lower at ₹1,30,409 per 10 grams in early trade.

Experts said, “MCX Gold is forming in a rising channel pattern and is currently trading around the zone of Rs 1,30,300- 1,30,400 per 10 gram, which faced rejection near Rs 1,32,250, which is now acting as resistance.” MCX Silver March futures were trading 1 per cent lower at Rs 1,81,600 per kg.

The decline comes after a strong rally in the previous session, when gold futures rose 0.30 per cent to close at Rs 1,30,462 per 10 grams and silver futures rose nearly 3 per cent to close at Rs 1,83,408 per kg, after hitting a new record high of Rs 1,85,234 during the day.

Precious metals prices remain highly volatile as investors await the outcome of the US Federal Open Market Committee (FOMC) meeting this week on December 10. The US central bank is set to announce its policy decision at a time when economic indicators are providing mixed signals.

The Personal Consumption Expenditure (PCE) price index, the Fed's measure of inflation, rose 0.3 percent in August and September of this year. On an annualized basis, it rose from 2.7 percent in August to 2.8 percent in September, indicating a slight increase in inflation. Meanwhile, rising interest rate expectations have put pressure on the US dollar. The dollar index remains near a six-week low of 98.76.