Gold prices opened on the Multi Commodity Exchange (MCX) on Monday at Rs 62,240 per 10 grams and hit an intraday low of Rs 62,195. In the international market, prices hovered around $2,023.84 per troy ounce.
Meanwhile, silver opened at Rs 71,023 per kg and hit an intraday low of Rs 70,970 on the MCX. The price hovered around $22.75 per troy ounce in the international market.
Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “Gold prices drifted slightly lower, on the back of firm dollar and U.S. yields and as markets remained on edge over the prospect of higher-for-longer US interest rates.”
Robust US economic data and a chorus of hawkish Federal Reserve comments saw markets largely price out expectations for early interest rate cuts this year, capping gains for gold prices. Last week, the dollar index consolidated near its three-week highs, while the US 10-year yield hovers around 4.1%.
“The US central bank is now expected to begin trimming rates only from June 2024, keeping market participants on edge and supporting an up-move in the dollar index. Meanwhile, increased geopolitical uncertainty, especially after the rejection of an Israel-Hamas ceasefire this week, pointed to higher safe-haven demand for gold in the near term. This week is important as market participants will keep an eye on US CPI, PPI, Retail Sales and IIP data,” said Modi.
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Deveya Gaglani, Research Analyst – Commodities, Axis Securities, said, “Gold prices remained under selling pressure last week due to the resilient US economy, and better-than-expected data print from the USA dented the sentiments of bullion, which dragged the prices lower. On the other hand, the dollar index raced towards a multimonth high, which kept Gold prices under check.”
“Gold prices closed slightly lower in the last session. Prices settled around the 62300 level, down by around 0.25 per cent. On the daily chart, prices have been stuck in a trading band between the 62100 and 62500 levels for the past few days due to a lack of trigger that can drive prices on either side. However, we expect prices to trade sideways with a positive bias as long as the 62000 level is intact on the downside,” said Gaglani.