Gold prices opened on the Multi Commodity Exchange (MCX) on Friday at Rs 61,970 per 10 grams and hit an intraday low of Rs 61,970. In the international market, prices hovered around $2,019.74 per troy ounce.
Meanwhile, silver opened at Rs 71,395 per kg and hit an intraday low of Rs 71,306 on the MCX. The price hovered around $23.12 per troy ounce in the international market.
Anuj Gupta, Chief of Commodity and Currency at HDFC Securities, said, “Yesterday, gold prices increased sharply by 0.42% and closed at 61878 levels. Silver prices increased by 1.39% and closed at 72112 levels.”
Gold witnessed a weak closing amidst volatility during the week, primarily driven by higher-than-expected Consumer Price Index (CPI) data in the United States. This pressure caused gold prices to decline from Rs 62,250 in MCX to Rs 61,900.
Jateen Trivedi, VP Research Analyst, LKP Securities, “Comex Gold experienced a drop from $2,030 to $1,985, where it found support as the market adjusted to the increased probability of interest rate adjustments being postponed from March to June-July 2024. Looking ahead, gold’s volatility is expected to persist within the range of $1,980 to $2,040, with $2,010 serving as a key median level.”
Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “Gold traded steady amidst a mixed set of data points from the US in the past few sessions, raising doubts over when the Federal Reserve will begin cutting interest rates.”
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Despite some relief, it was still set for a weekly loss as traders largely scaled back expectations for early rate cuts, especially following better-than-expected inflation data earlier this week. On the other hand, US retail sales and IIP were reported lower than expectations, supporting a relief rally in gold and silver prices.
Fed officials still warned against betting on early rate cuts. Atlanta Fed President Raphael Bostic said that while the central bank had made headway towards lowering inflation, he was still not ready to call for rate cuts yet. His comments came ahead of producer price index inflation data, which was reported better than expected.
“Amidst these mixed sets of data points, US yields and the dollar index also held firm above the 4.1% and 104 marks, respectively. Volatility could be a bit lower on the back of holidays in the US,” Modi.