Gold and silver prices today: Yellow metal holds steady following volatile week ahead of US economic reports, Fed policy talk

Gold opened on the Multi Commodity Exchange (MCX) on Tuesday at Rs 62,100 per 10 grams and hit an intraday low of Rs 62,069. In the international market, prices hovered around $2,026.78 per troy ounce.

Meanwhile, silver opened at Rs 74,465 per kg, hit an intraday low of Rs 74,253 on the MCX, and hovered around $23.78 per troy ounce in the international market.

Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “Gold price is trading steady after sharp whipsaw witnessed in the previous week on the back of US economic data and US Fed policy meeting.”

The US central bank kept interest rate unchanged and signalled three rate cuts in 2024; they also lowered the growth forecast and kept the inflation estimates steady, supporting an up-move in bullions.

However, Fed officials quickly tried to ease off the rate cut expectations, mentioning that markets are “a little bit ahead” of central banks on rate cuts. US Fed’s Loretta also pushed back on expectations that the central bank will abruptly pivot towards lowering borrowing costs now that it is more confident it has lifted its benchmark interest rate to a level restrictive enough to get inflation under control.

“Bets for a rate cut in the March policy meeting have risen to 70% from 40% post the policy meeting, supporting the sentiment for gold and silver prices. Focus today will be EU CPI and Housing numbers from the US,” Modi.

The Federal Open Market Committee, or FOMC, kept its benchmark rate at a more than two-decade high range of 5.25% to 5.50%.

Anuj Gupta, Head of Commodity and Currency at HDFC Securities, said, “We have noticed a subdued market before Christmas and New Year festivals in international markets. However, appreciation in the Rupee, as the Rupee is trading at 3-month high levels against the dollar, curbs the appreciation in Bullion prices.”

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Prices settled around 62180 and were up by 0.17 per cent. Deveya Gaglani, Research Analyst – Commodities, Axis Securities, said, “On the daily chart, prices are trading above 20 and 9 EMA and can hold the strong support zone of 62000 level, which is a positive sign. As long as the mentioned support zone is intact on the downside, buy-on dips should be the strategy for this week. Investors and traders will focus on the United States economic data later in the week, which could provide insights into the Federal Reserve’s stance on monetary policy.”

Additionally, Amit Khare, Associate Vice President at GCL Broking, said, “MCX Gold and Silver gave mixed closings yesterday. February Gold closed at 62291(0.14%), and March Silver closed at 74410(-0.15%). Traders are advised to make fresh buy positions in Gold and Silver near given support level one with the stop loss of support level two and book near given resistance levels: Gold February Support 62000/61700 and Resistance 62400/62600. Silver March Support 74200/73500 and Resistance 75500/76000.”

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