Gold opened on the Multi Commodity Exchange (MCX) on Tuesday at Rs 62,826 per 10 grams and hit an intraday low of Rs 62,474. In the international market, prices hovered around $2,031.35 per troy ounce.
Meanwhile, silver opened at Rs 76,264 per kg, hit an intraday low of Rs 76,014 on the MCX, and hovered around $24.52 per troy ounce in the international market.
Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “Gold prices, after marking an all-time high on both domestic and Comex, inched lower on the back of some profit booking. Bets that the US Federal Reserve could begin cutting interest rates as soon as March 2024, even as central bank officials remained cautious, supported an up move in safe-haven assets.”
“Yesterday gold prices closed on a negative note, down by 1.56% at 62369. However, it hit a lifetime high of 64063 levels,” added Anuj Gupta, Head of Commodity and Currency at HDFC Securities.
However, the attack on an American warship and commercial vessels in the Red Sea ramped up concerns over an escalation in the Israel-Hamas war, increasing the safe-haven appeal for both gold and silver prices.
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“Fed Fund futures prices show a 97% chance the Fed will keep rates on hold in December and a 60% chance that the central bank will trim rates by 25 bps in March next year. A few triggers will be very important to keep an eye on, like the US non-farm data scheduled this week and the Fed policy meeting next week. Focus today will be on EU CPI and Services PMI from major economies,” Modi.
Amit Khare, Associate Vice President at GCL Broking, said, “February gold closed at 62369(-1.52%) and March silver closed at 76168(-2.48%). As per the daily chart, Bullions were looking strong and gave a fresh break out in the daily chart. The Momentum Indicator RSI also indicates the same., Traders are advised to make fresh buy positions in Gold and Silver near the given support level one with the stop loss of support level two and book near the given resistance levels: Gold February Support 62200/61900 and Resistance 62800/63000. Silver March Support 76000/75000 and Resistance 78000/78500.”