Gold Price Outlook: Experts Warn of Pressure Ahead; ₹1,22,000 Emerges as Key Support Level

Gold may remain under pressure in the coming days as global economic cues and shifting expectations around US Federal Reserve policy continue to influence investor sentiment. According to Maneesh Sharma, AVP – Commodities & Currencies at Anand Rathi Shares and Stock Brokers, both gold and silver could experience downward pressure this week.

Global Cues Dragging Prices Down

Last week, precious metals saw sharp fluctuations. Weak US economic indicators and early expectations of a December Fed rate cut initially supported gold. Concerns rose due to:

• Job losses in October
• Falling consumer sentiment
• A 40-day government shutdown raising growth worries

However, once the US government reopened, safe-haven demand dropped, reducing upward momentum for gold.

Rate Cut Expectations Fall

Market expectations for a December Fed rate cut have fallen sharply from 85–90% to 45–70%, reducing bullish sentiment for gold. Fed officials have turned cautious, citing persistent inflation pressures despite some signs of labour market weakness.

A stronger US dollar index and continued ETF outflows are adding further pressure on gold prices.

Asian Demand Weakens

Physical demand in Asia has remained soft:

• Indian dealers offered steep discounts due to volatility.
• Chinese demand cooled after regulatory changes.

Key Levels to Watch

Gold recently fell from $4,200 to lows near $4,050. Analysts warn:

• Weak US data may offer limited support
• Reduced chances of rate cuts and lower tariff uncertainties may push prices lower

Global support zone: $4,000–$3,920.

On the domestic front:

• ₹1,22,000 is the crucial support level
• A break below it may send prices toward ₹1,19,500–₹1,20,000
• On the upside, ₹1,25,000 is a major resistance level
• Buying interest may resume only above ₹1,25,000

Triggers This Week

Gold prices will be influenced by:

• President Trump’s stance on tariffs
• US economic data releases post-shutdown
• Fed officials’ commentary
• Key indicators such as nonfarm payrolls

Analysts caution investors to remain alert as volatility may continue.