Gold prices opened on the Multi Commodity Exchange (MCX) on Tuesday at Rs 62,240 per 10 grams and hit an intraday low of Rs 62,200. In the international market, prices hovered around $2033.4 per troy ounce.
Meanwhile, silver opened at Rs 69,659 per kg and hit an intraday low of Rs 69,250 on the MCX. The price hovered around $22.56 per troy ounce in the international market.
Yesterday gold prices corrected sharply by 0.31% and closed at 62149 levels. Silver prices also closed on a negative note, down by 1.49%, and closed at 69430 levels.
Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “Gold and silver prices slipped in yesterday’s session on the back of better-than-expected data points from the US and delay in rate cut expectations.”
The fall in industrial metals put additional pressure on silver prices. Multiple US Federal Reserve officials warned that the bank was in no hurry to cut interest rates; signs of sticky US inflation and resilience in the job market furthered this notion, with traders now steadily pricing out chances of rate cuts in May and June.
Modi said, “Markets are currently pricing in about an 80% probability of a rate cut in 2024, with a 62% chance of the first quarter-point cut coming in June. US weekly jobless claims, Manufacturing PMI from the US were better than expectations supporting the Dollar Index.”
Yesterday, sales of new U.S. single-family homes rose less than expected in January, while the Dallas Fed’s monthly manufacturing activity index was reported positive.
“Markets now await data on US durable goods orders due later in the day. This week’s focus will also be on the US GDP and the US Federal Reserve’s preferred gauge of inflation—the core personal consumption expenditures (PCE) price index. Gold on the domestic front could trade in a range of Rs 61,800 – 62,500,” said Modi.
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Jateen Trivedi, VP Research Analyst, LKP Securities, said, “Gold prices experienced volatility during the week, fluctuating between 62200 and 62340. The week began with a minor gap-down opening, influenced by weakness observed in the Comex market at the start of Monday morning.”
Market participants are closely monitoring major data releases that are expected to impact both the US Dollar and Gold prices throughout the week. As a result, heightened volatility is anticipated in the Gold market.
“Traders and investors are advised to remain vigilant and monitor developments closely to capitalise on potential opportunities in the Gold market,” said Trivedi.