Gold opened on the Multi Commodity Exchange (MCX) on Thursday at Rs 62,414 per 10 grams and hit an intraday low of Rs 62,322. In the international market, prices hovered around $ 2,026.87 per troy ounce.
Meanwhile, silver opened at Rs 74,750 per kg, hit an intraday low of Rs 74,416 on the MCX, and hovered around $23.8 per troy ounce in the international market.
Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “Gold and silver prices inched lower after a sharp surge in prices witnessed in earlier sessions, on the back of some profit booking and a cautious mood following the US non-farm payroll scheduled later this week.”
Gold has managed to keep its head above water, trading above the $2,000 mark, as investors continue to discount an ease off in the Fed’s current monetary policy stance. On the data front, the US labour market is showing signs of an ease off; JOTLS number earlier this week reported job vacancies falling to a multi-year low, and yesterday, US private payroll data was reported at 103,000 against expectations of 130,000 supporting metal prices.
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Modi said, “Focus now shifts to US non-farm payroll data, which could provide further clarity on the labour market and overall economy. Fed Funds futures prices show investors pricing in a 55% chance the Fed could begin trimming rates as soon as March 2024. The probability chart also shows an over 95% chance of a pause in the December Fed meeting. Market participants today will monitor EU GDP and US weekly jobless claims data.”
Weakness in the dollar and geo-political tension are the major reasons for the bull trend in gold & silver.
Amit Khare, Associate Vice President at GCL Broking, said, “MCX Gold and Silver gave a mixed closing yesterday. February Gold closed at 62391(0.33%), and March Silver closed at 74770(-0.68%). As per the daily chart, Bullions are showing some profit booking and making the top. Momentum Indicator RSI is also indicating the same, so traders are advised to book their longs and can make fresh short positions in Gold and Silver near the given resistance level one with the stop loss of resistance level two and book near given support levels: Gold February Support 62200/61900 and Resistance 62500/62800. Silver March Support 74000/73500 and Resistance 75400/76400.”