Today’s gold and silver prices are showing an upward trend, as domestic precious metal futures traded in the green on Thursday. Experts are attributing this positive movement to the expectation of interest rate cuts from the Federal Reserve in 2024 and a weaker US currency. At the last count, MCX gold futures (Feb 5) were up Rs 119 or 0.21 per cent at Rs 63,799 per 10 grams, having traded between Rs 62,728 and Rs 63,799 earlier in the day. Similarly, MCX Silver futures (Mar 5) were up Rs 76 or 0.1 per cent at Rs 75,723 per kg.
Neha Qureshi, Senior Technical & Derivative Research Analyst at Anand Rathi Commodities & Currencies, recommended buying gold February futures on dips at 63,650, with a stop loss at Rs 63,200 and a target price of Rs 64,100. For silver March futures, she suggested buying on dips at Rs 75,600, setting a stop loss of Rs 74,600, and targeting Rs 77,600.
Looking at the international market, COMEX gold was up 0.17 per cent at $2096.6 per ounce. Qureshi mentioned that gold continues to trade with positive momentum as traders gain increasing confidence in the prospect of US rate cuts by the end of the next quarter. The market is generally bullish towards gold due to lower yields and interest rates. She predicts that the market may end the year on a positive note as it heads for new highs in the coming year.
Furthermore, the spot gold prices in major Indian cities were indicative of this trend, with price increases across the board.
Additional Insight: The positive movement in gold and silver prices is not only driven by the expectation of interest rate cuts from the Federal Reserve and a weaker US currency but is also influenced by global economic and geopolitical factors. Investors are advised to closely monitor these developments and seek professional advice before making any investment decisions.
