Gold prices opened on the Multi Commodity Exchange (MCX) on Tuesday at Rs 65,609 per 10 grams and hit an intraday low of Rs 65,604. In the international market, prices hovered around $2159.15 per ounce.
Meanwhile, silver opened at Rs 75,575 per kg and hit an intraday low of Rs 75,520 on the MCX. In the international market, the price hovered around $25.11 per ounce.
“Yesterday gold prices increased by 0.10% and closed at 65,608 levels. Recently, gold hit a new high of 66,356. Silver prices closed on a negative note, down 0.20%, and closed at 75,496. The market is awaiting the Fed’s decision, and it is a statement on interest rates,” said Anuj Gupta, Chief of Commodity and Currency at HDFC Securities.
COMEX Gold prices pared early losses and closed marginally higher on Monday, ahead of a slew of central bank decisions this week. Gains in the dollar index and treasury yields limited the upside in the non-yielding yellow metal. The US benchmark 10-year yields have been rising for the past six days as hotter-than-expected US CPI in Jan, and Feb prompted traders to dial back bets on the pace and scope of monetary easing expected this year. Geopolitical tensions also remained high, boosting the allure of the safe-haven metal. A record win secured by Russian President Vladimir Putin in the Presidential elections raised the spectre of an increase in tensions between Russia and Ukraine. Meanwhile, Israeli Prime Minister Benjamin Netanyahu said he would proceed with plans to push into Gaza’s Rafah enclave, making chances for a peace agreement more difficult and adding to the geopolitical risk premium, per Kotak Securities Research report.
Now, the major focus is on the FOMC meeting due tomorrow, where the Federal Reserve is expected to hold the rates steady. However, attention will be paid to updated projections and Fed Chair Jerome Powell’s guidance on rate cut timing. Jateen Trivedi, VP Research Analyst, LKP Securities, said, “Market attention now turns to the Federal Reserve’s policy statement scheduled for Wednesday evening. While no interest rate cuts are anticipated, investors will closely scrutinise the statement for clues regarding potential rate cuts later in 2024.”
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Deveya Gaglani, Research Analyst – Commodities, Axis Securities, said, “Gold prices posted a smart recovery in the last session. Prices rallied more than 500 points from the day’s low and settled around 65630 level. Now, traders will focus on the FOMC decision, which will be out on Wednesday. The FED Policy makers may signal a less dovish approach and can deal with the easing cycle Considering the recent CPI data, which came hotter than expected. This may push the US dollar higher, leading to profit booking in Gold prices this week. However, the short-term trend looks strong for Gold prices as long as the 64500 level is intact on the downside.”
COMEX Silver prices closed lower on Monday, tracking mixed sentiments in the industrial metals and marginal gains in gold prices. Chinese data released earlier today showed that Chinese Retail sales, Industrial output and fixed asset investment topped estimates. Supply-side stimulus and export demand are offering some relief even as domestic demand remains muted. At the same time, upbeat data also raised doubts over whether policymakers will step up support that is still needed to boost demand, per Kotak Securities Research report.
