Gold started trading on the Multi Commodity Exchange (MCX) at Rs 62,193 per 10 grams and reached a low of Rs 61,957 on Monday. In the international market, prices were around $2,023.63 per troy ounce.
Silver, on the other hand, opened at Rs 74,525 per kg, hit an intraday low of Rs 74,425 on the MCX, and hovered around $23.92 per troy ounce in the international market.
Manav Modi, an analyst at MOFSL, noted that “Gold price continues to trade higher, extending a push above key levels on the back of dovish signals from the Federal Reserve, which sparked steep losses in the dollar and Treasury yields.”
The US Fed announced that it was finished with raising interest rates and will consider interest rate cuts in 2024. This announcement, along with the dot plot signaling at least three rate cuts by the central bank, caused the dollar to slide to four-month lows and Treasury yields to fall across the board, with the 10-year rate breaking below 4%.
Amit Khare, Associate Vice President at GCL Broking, suggested that with the FOMC keeping key rates unchanged and signaling 3 rate cuts in 2024, the fundamentals are positive for the market. He advised traders to consider making fresh buy positions in Gold and Silver near given support levels and to monitor the resistance levels for potential profit-taking.
Additional insight:
Investors and traders in both the domestic and international markets are closely monitoring the dovish signals from the Federal Reserve and the potential impact on the value of the dollar and Treasury yields. The uncertainty surrounding future interest rate cuts has added volatility to both the gold and silver markets, making it crucial for market participants to stay informed about potential shifts in the landscape.
