Gold prices opened on the Multi Commodity Exchange (MCX) on Monday at Rs 62,397 per 10 grams and hit an intraday low of Rs 62,397. In the international market, prices hovered around $2,027.65 per troy ounce.
Meanwhile, silver opened at Rs 72,418 per kg and hit an intraday low of Rs 72,375 on the MCX. The price hovered around $23.09 per troy ounce in the international market.
Anuj Gupta, Chief of Commodity and Currency at HDFC Securities, said, “Yesterday gold prices closed on a positive note up by 0.36% and closed at 62186 levels. Silver prices also increased by 0.84% and closed at 72377 levels—geopolitical tension, higher crude oil prices & expectations of the announcement of a schedule of cuts in rates by FOMC are providing support to the billions as a safe haven asset.”
“Gold may trade between $2020 and $2040 levels, and on MCX, it may trade between 62,000 and 62500 levels. Silver may trade between 72,000 and 73,000 levels,” said Gupta.
Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “Gold firmed at the start of this week as rising tensions in the Middle East lifted demand for the safe-haven asset, while markets awaited Federal Reserve policy decision later this week for more clues on the timing and pace of rate cut this year.”
The dollar index continues to trade steadily above the 103 mark while US 10-year yields slipped slightly below the 4.1% mark. Washington was considering its response to the first deadly strike on its forces in the Middle East since the Gaza war began after a drone attack in northeastern Jordan at the weekend killed three U.S. servicemen and wounded at least 34, keeping the metals supported.
Last week’s data showed moderate growth in the US of 3.3% on an annual basis, while annual inflation was reported below 3% for the third consecutive month. Sticky inflation and increasing signs of resilience in the US economy give the Fed more headroom to keep rates higher for longer.
“The Fed is set to meet next week and is widely expected to keep rates on hold. Markets were also seen pricing in a pause during its March meeting, flipping from earlier expectations for a 25 bps rate cut. Focus this week will also be on US consumer confidence and US jobs market data,” said Modi.