Gold prices opened on the Multi Commodity Exchange (MCX) on Friday at Rs 62,567 per 10 grams and hit an intraday low of Rs 62,567. In the international market, prices hovered around $2,043.86 per troy ounce.
Meanwhile, silver opened at Rs 71,346 per kg and hit an intraday low of Rs 71,340 on the MCX. The price hovered around $22.73 per troy ounce in the international market.
Anuj Gupta, Chief of Commodity and Currency at HDFC Securities, said, “Yesterday gold prices increased by 0.51% and closed at 62567 levels. Silver prices were closed on a positive note, up by 0.72%, and closed at 71279 levels.”
Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “Gold and silver were weighed down in the first half of yesterday’s session, however, picked up a pace after US inflation data.”
Recent data points from the US, consumer confidence, core durable goods orders, and GDP were reported lower than expectations. However, prices did not react much as market participants were a bit cautious ahead of the US inflation data reported yesterday.
The US core PCE Price Index was reported lower, in line with expectations; the index rose by 0.4% in January, while on an annual basis, inflation rose 2.8%- smaller in nearly three years.
Modi said, “Federal Reserve officials continue to mention that the bank needed to do more work to bring down inflation. This followed a chorus of officials stating that the Fed was in no hurry to begin cutting interest rates early.”
“Market participants are betting on about 25 bps interest rate cuts for 2024 in the US, with a 65% chance of the first one coming in June. Sentiments are also weighed as SPDR Gold holdings fell 3.3% in February and 6.4% so far this year. Focus today will be on EU CPI and manufacturing PMI from major economies,” said Modi.
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Jateen Trivedi, VP Research Analyst, LKP Securities, said, “Gold prices maintained a narrow range between $2038-2034 in the global market, with support holding steady around the $2025 mark amidst a week dominated by critical data releases.”
Similarly, in MCX, gold prices have witnessed robust buying momentum, rebounding from recent lows around Rs 61250 observed on February 15, 2024, and currently hovering around Rs 62275.
“Positive data from this release could potentially bolster gold prices during the evening session, sustaining the positive sentiment observed in the market,” said Trivedi.