Gold prices opened on the Multi Commodity Exchange (MCX) on Wednesday at Rs 62,215 per 10 grams and hit an intraday low of Rs 62,181. In the international market, prices hovered around $2,030.19 per troy ounce.
Meanwhile, silver opened at Rs 70,948 per kg and hit an intraday low of Rs 70,762 on the MCX. The price hovered around $22.41 per troy ounce in the international market.
Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “Gold and silver prices continue to inch lower as investors looked to a swathe of upcoming economic data for more trading cues, along with delay in rate cut expectations which is capping gains for the prices.”
Several comments from Federal Reserve officials furthered this notion, as they signalled that the bank was in no hurry to begin loosening policy due to sticky inflation.
The dollar remained close to three-month highs on this notion, hovering between the 103.50-104 mark; similarly, the US 10Y Yield also inched higher, trading around 4.2%.
On the data front, both US Core durables goods orders and Consumer confidence data were reported lower than expectations; however, not much of a reaction was seen in bullion prices.
Modi said, “A second reading on Q4 GDP data is scheduled today, which is expected to show mild cooling in the U.S. economy, but not to the extent that the Fed will be pushed into loosening policy. PCE price index data- the Fed’s preferred inflation gauge- is also scheduled on the calendar tomorrow and is expected to show inflation remaining sticky.”
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Jateen Trivedi, VP Research Analyst, LKP Securities, said, “Gold prices experienced a positive rally in MCX, reaching Rs 62,350, up by Rs 175. This upward movement was supported by a rise in Comdex Gold, which increased by $6 to reach $2036. The positive momentum in Gold prices was attributed to weakness observed in the dollar index, which declined from $104 to $103.65 over the past two days.”
Trivedi said, “Market dynamics indicate that demand is strong around the 62000 mark, while supply is visible around 62650. Looking ahead, the week is packed with important data releases in the US, including GDP, CB Consumer Confidence, Core PCE Price Index data, and US Manufacturing data scheduled for later in the week. These data releases can potentially induce volatility in Gold prices, leading to possible spikes throughout the week.”