Gold prices opened on the Multi Commodity Exchange (MCX) on Tuesday at Rs 61,994 per 10 grams and hit an intraday low of Rs 61,939. In the international market, prices hovered around $2,024.25 per troy ounce.
Meanwhile, silver opened at Rs 71,106 per kg and hit an intraday low of Rs 70,956 on the MCX. The price hovered around $22.38 per troy ounce in the international market.
Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “Gold prices advanced, tracking mild weakness in the dollar as market participants took a cautious approach before a slew of key US economic readings this week, although the prospect of higher-for-longer US interest rates still kept gains subdued. Signs of sticky US inflation and labour market strength, coupled with hawkish warnings from Fed officials, capped gains for metals.”
The dollar index and US 10-year yields are also holding steady near 103.50 and 4.1%, respectively. Fed officials last week said the US central bank needs more inflation data before any rate cut judgement can be made and that the baseline for cuts to start was in the third quarter.
Also read: Indel Money to offer NCD yielding 12.25% for 6 years; subscription open till January 30
Also read: Budget 2024-25: Here is what experts expect for the insurance sector
Gold also witnessed some rebound from its 2024 lows, as worsening geopolitical conditions in the Middle East spurred safe-haven buying.
Modi said, “Markets are pricing in the U.S. central bank to hold rates unchanged at the end of the policy meeting on Jan. 30-31 and have pared back the timing of the first interest rate cut, according to CME’s FedWatch Tool. Focus this week will be on the preliminary PMI data from major economies fourth-quarter advance GDP estimates and personal consumption expenditures data.”