Today’s gold and silver rates in domestic markets have been impacted by comments from a European central bank policymaker who expressed caution about expecting significant rate cuts. This has caused precious metal futures to trade under pressure, with MCX gold futures (Feb 5) down by 0.13 percent at Rs 62,475 per 10 grams. Similarly, MCX Silver futures (Mar 5) have slipped by 0.26 percent at Rs 72,435 per kg.
Neha Qureshi, Senior Technical & Derivative Research Analyst at Anand Rathi Commodities & Currencies, commented that gold remained subdued due to a lack of fresh triggers and expectations around upcoming US data. However, she also sees the bullions trading near the demand zone, indicating the potential for a good recovery.
Amit Khare, Associate Vice President at Ganganagar Commodity Limited (GCL) Broking, advised traders to make fresh buy positions in Gold and Silver near given support levels. He sees support for gold February futures at 62300/62000 and resistance at 62600/62800. In the case of silver March futures, he sees support at 72200/71200 and resistance at 73500/74000.
Additionally, the COMEX gold in the international market is relatively flat with a positive bias at $2052. With choppy US data expected this week and hawkish commentary from ECB policymakers, uncertainties surrounding the timing of rate cuts have increased, leading to a cautious mood in day trade.
Looking at spot gold prices in major Indian cities as of January 16, 2024, Mumbai recorded gold prices of Rs 64,475 for 24k (10 grams), while Delhi stood at Rs 64,575. Investors are advised to check prices with their jeweller before acting on the information.
Insight:
The commentary from the European central bank policymaker serves as a reminder that the movement of precious metals, particularly gold and silver, is often influenced by global economic news and central bank policies. In addition to tracking domestic market rates, it is important for traders and investors to keep an eye on international market developments and economic cues from major economies like the US and Europe. These macroeconomic factors can impact the demand and prices of gold and silver, creating potential trading and investment opportunities.
