Gold and silver prices opened in the red on Friday, November 21, continuing their slip for the second day in a row. This decline happened because hopes for a US interest rate cut are fading. The recent US Fed Minutes showed a divided opinion among Federal Reserve officials. Some are worried about a weak job market while others remain concerned about ongoing inflation. Traders now see only a 30% chance of a rate cut next month, down from 50% just a day before. On the MCX, December gold futures fell by Rs 355 or 0.3%, dropping to Rs 1,22,372 per 10 grams. Silver futures also followed the weak trend and dropped Rs 2,341 or 1.52% to Rs 1,51,810 per kilogram. The Fed meeting minutes revealed a split Federal Reserve. They cut rates last month but worry that easing too soon could hurt inflation control efforts. Inflation has stayed above the 2% target for more than four years. Fed Governor Powell stayed cautious, saying a December rate cut is not a “foregone conclusion.” "Gold prices declined as markets absorbed a stronger-than-expected U.S. September jobs report, which tempered hopes for a December rate cut," said Manav Modi from Motilal Oswal. The US dollar index stayed strong above 100 against other major currencies. The Labor Department’s September jobs report, delayed by a government shutdown, showed nonfarm payrolls rose by 119,000—more than twice the expected 50,000 increase. This suggests the job market remains strong. Internationally, gold prices eased after the strong US jobs report. Spot gold dipped 0.1% to $4,072.87 per ounce, while US December gold futures rose 0.3% to $4,071.90. Other metals showed mixed trends: silver fell 0.5% to $50.35, platinum rose 0.4% to $1,521.41, and palladium held steady at $1,377.50. Despite the dip, gold is still on track for its best weekly gain in over a month, although the stronger dollar makes gold pricier for buyers outside the US. Gold usually does well in low interest rate times and in economic trouble because it does not pay interest. The recent reopening of the US government after a record 43-day shutdown calmed investors and brought back regular economic reports. What about trading gold now? "At MCX, gold has support at Rs 1,22,000-1,21,400 and resistance at Rs 1,23,300-1,24,000, while silver has support at Rs 1,53,000-1,51,500 and resistance at Rs 1,55,500-1,57,000," said Manoj Kumar Jain from Prithvifinmart Commodity Research. He advised, "We suggest waiting for some corrective dips for initiating fresh long positions in gold and silver." Here are gold prices in some Indian cities today: - Delhi: Standard gold (22 carat) Rs 91,232 per 8 grams, Pure gold (24 carat) Rs 99,520 per 8 grams. - Mumbai: Standard gold Rs 91,112, Pure gold Rs 99,400 per 8 grams. - Chennai: Standard gold Rs 91,992, Pure gold Rs 1,00,360 per 8 grams. - Hyderabad: Standard gold Rs 91,112, Pure gold Rs 99,400 per 8 grams. (Disclaimer: The views in this article are from experts and do not represent The Economic Times.)