Gold opened on the Multi Commodity Exchange (MCX) on Friday at Rs 63,246 per 10 grams and hit an intraday low of Rs 63,211. In the international market, prices hovered around $2,070.37 per troy ounce.
Meanwhile, silver opened at Rs 74,550 per kg, hit an intraday low of Rs 73,873 on the MCX, and hovered around $23.85 per troy ounce in the international market.
Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “Gold prices traded in a tight range after a sharp surge seen in the earlier session, amidst rising optimism over early interest rate cuts by the Federal Reserve drove a strong melt-up in prices through December.”
Bullion blew past key levels in recent sessions and was now trading less than $100 below a record high hit at the beginning of the month. Gold’s recent rally was triggered by the Fed signaling it was done raising interest rates, and that it will trim lending rates in 2024.
“Bets for interest rate cuts from the U.S. Federal Reserve have firmed following cooler inflation data, with traders now pricing in an 88% chance of monetary policy easing in March, according to the CME Fed-Watch tool. The dollar index inched slightly higher rose after hitting a five-month low. Similarly, benchmark 10-year bond yields also rose, coming off their lowest levels since July. U.S. jobless claims rose last week, indicating the labour market continues to cool in the year’s fourth quarter,” added Modi.
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On the physical front, China’s net gold imports via Hong Kong rose by about 37% in November compared to the previous month.
“Yesterday gold prices corrected by 0.45% and closed at 63389 levels. Silver prices were corrected by 0.90 per cent and closed at 74959 levels. We have seen profit booking on the last trading session of the year 2023,” said Anuj Gupta, Head of Commodity and Currency at HDFC Securities.
Amit Khare, Associate Vice President at GCL Broking, said, “MCX Gold and Silver gave negative closing yesterday, February Gold closed at 63389(-0.50 per cent) and March Silver closed at 74959(-0.85 per cent), As per daily chart Bullions are looking strong, Momentum Indicator RSI also indicating the same, So 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 63300/63000 and Resistance 63700/64000. Silver March Support 74500/73800 and Resistance 75500/76000.