Gold: Following the Bank of Japan’s most recent policy announcement, investors booked profits, which caused gold prices to decline in the local futures market on Friday morning.

Although gold is often seen as a hedge against increasing inflation, lower U.S. inflation figures also had an impact on prices.

Gold futures for February delivery were down 0.56 percent at Rs 133,772 per 10 kilos during early trading on the Multi Commodity Exchange (MCX).

“Gold’s resistance is between $4355 and 4385, while its support is between $4275 and 4245. According to analysts, silver’s resistance is around $65.60-66.15, while its support is at $64.40-63.75.

“Gold has resistance at Rs135,350-135,970 and support at Rs133,850-133,110 in INR terms,” they said.

At the same time, silver futures for March were also under pressure, down 0.26 percent to Rs 203,034 a kg.

According to specialists, “Silver has resistance at Rs2,05,810, 2,07,270 and support at Rs202,450-200,280.”

The Bank of Japan increased its main policy rate to 0.75%, the highest level since September 1995, which caused the decrease.

Even though the market had mostly anticipated the rate rise, it caused some profit booking and is probably going to have an effect on yen-carry trades, which in turn affected the pricing of commodities globally.

Following the release of lower-than-expected US inflation numbers, gold prices fell internationally as well.

In November, US consumer prices increased 2.7% year over year, less than the 3.1% rise experts had forecast.

Lower inflation puts pressure on prices by making gold less desirable as a hedge.

The dollar index increased by 0.10 percent and remained close to one-week highs, which further contributed to the weakening.

Buyers of gold using other currencies often find gold more costly when the dollar is stronger, which further reduces demand for the yellow metal.

Gold and silver prices fell in early trading on Friday, according to analysts, as a result of a combination of global signals, including central bank measures, worse US inflation statistics, and a stronger currency.