Gold prices opened at Rs 63,329 per 10 grams on the MCX, hitting an intraday low of the same amount. In the international market, prices hovered around $2,067.40 per troy ounce. Similarly, silver opened at Rs 74,545 per kg, hitting an intraday low of Rs 74,508 on the MCX, and hovered around $23.85 per troy ounce in the international market.
Anuj Gupta, Head of Commodity and Currency at HDFC Securities, noted that gold prices had increased by 0.19% and closed at 63,320 levels the previous day, while silver prices corrected by 0.05% and closed at 74,390 levels.
Manav Modi, Analyst, Commodity and Currency at MOFSL, mentioned that the prospect of interest rate cuts by the US Federal Reserve in 2024 was supporting higher gold prices. He also stated that weaker-than-expected economic data from the US was contributing to the movement of bullion prices.
Furthermore, Modi pointed out that the dollar index had seen a reversal from five-month lows, trading now around 101.60. Similarly, the US 10-year yields were also higher, trading around the 3.9% mark. He also highlighted the market’s anticipation of interest rate cuts from the US Fed following cooler inflation data.
Amit Khare, Associate Vice President at GCL Broking, recommended making fresh buy positions in Gold and Silver near the given support level one with the stop loss of support level two and booking near the given resistance levels.
Additional Insight:
Investors should closely monitor US economic data points and minutes from the last Fed meeting to gain clarity on the US interest rate outlook. The anticipation of monetary policy easing in March, as well as the movement of the dollar index and US 10-year yields, will continue to impact the prices of gold and silver. An understanding of these factors will be crucial in making informed trading decisions in the precious metals market.
