Gold prices hovered on the MCX on Thursday at Rs 70,778 per 10 grams and hit an intraday low of Rs 70,631.
In the international market, prices were around $2,316.95 per ounce.
Silver was at Rs 82,060 per kg, hitting an intraday low of Rs 81,501 on the MCX. In the international market, the price hovered around $27.15 per ounce.
Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “Gold prices kept to a tight range, as further losses in the metal were limited by a weaker dollar, although anticipation of more cues on interest rates kept market participants on the edge.”
Bullion also witnessed a drop in the past few trading sessions as easing tensions over a war between Iran and Israel sapped away safe-haven demand.
Updates regarding missile strikes and tensions are still being reported. However, market participants are waiting for any further escalation in the situation. The dollar eased slightly after softer-than-expected purchasing managers index data for April.
Preliminary manufacturing and services PMI from the US was reported slightly below the 50 mark, supporting an up-move in bullions. However, durable goods order data in yesterday’s session was reported better than the previous month.
“Fed official’s hawkish comments have been preparing the market for further delay in rate cuts as the US central bank needs further evidence regarding an ease off in inflation; bets for rate cuts have shifted now to September from the month of June. The focus now shifts to US GDP, and weekly jobless claims and PCE Price index data are scheduled this week,” said Modi.
Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said, “Gold prices experienced a decline of Rs 180, retracing Rs 300 from their intraday high. In MCX, the base support is observed at Rs 70,000, with resistance at Rs 71,250. Meanwhile, in Comex trading, prices were weaker, with a major resistance level at $2335 and immediate support in the range of $2290-2300. Market participants are closely monitoring the PCE Price Index data in the US on Friday for further insights into the currency’s direction.”