Gold’s opening price on the Multi Commodity Exchange (MCX) was Rs 62,525 per 10 grams, dropping to an intraday low of Rs 62,485. Meanwhile, the international market saw gold prices hover around $2,030.18 per troy ounce. On the other hand, silver opened at Rs 74,641 per kg, hit an intraday low of Rs 74,484 on the MCX, and hovered around $23.84 per troy ounce in the international market.
Manav Modi, Analyst at MOFSL, commented that while gold traded in a narrow range, silver prices were under pressure due to the dollar’s strength against major currencies. The recent dovish comments from officials of the European Central Bank (ECB) and decisions by the Bank of England and the Bank of Canada to keep interest rates unchanged have led investors and traders to believe that global interest rates have peaked. These factors have contributed to the restrained movement of gold prices.
As traders looked to the non-farm payrolls data, the hope for signs of a weaker labor market to boost chances of a rate cut by the Federal Reserve as early as March. Modi noted that weaker-than-expected jobs data could keep the dollar weighed down and lift precious metal prices.
Amit Khare, Associate Vice President at GCL Broking, advised traders to book their long positions and consider making fresh short positions in gold and silver near the given resistance levels. He recommended specific support and resistance levels for both gold and silver.
In conclusion, experts believe that gold, as a hedge against inflation and currency depreciation, will remain stable amidst market fluctuations. However, there may be some pressure on silver prices. As such, traders and investors need to closely monitor these indicators to make informed investment decisions.
Additional insight:
The article emphasizes the impact of global economic indicators and central bank decisions on the fluctuation of gold and silver prices. It also highlights the importance of upcoming economic data, such as non-farm payrolls, in driving market movements. Furthermore, the advice from experts to monitor specific support and resistance levels for gold and silver provides valuable guidance for traders and investors. This insight showcases the interconnectedness of various economic factors and their influence on the precious metals market.
