Gold opened on the Multi Commodity Exchange (MCX) on Thursday at Rs 63,728 per 10 grams and hit an intraday low of Rs 63,728. In the international market, prices hovered around $2,086.89 per troy ounce.
Meanwhile, silver opened at Rs 75,743 per kg, hit an intraday low of Rs 75,632 on the MCX, and hovered around $24.45 per troy ounce in the international market.
Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “A significant rally was seen in Gold prices yesterday, as it breached above the previous all-time high levels of $2070 mark.”
Yesterday, gold prices increased and closed up by 1.04% at 63678 levels. Silver prices also increased by 0.83% and closed at 75647 levels.
This rally in safe-haven assets is primarily triggered by the Fed signalling it was done raising interest rates and that it will trim lending rates in 2024. After lower-than-expected growth and inflation data from the US, optimism regarding early rate cuts in 2024 is continuously rising.
“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 slipped to a five-month low and was set for its worst yearly performance since 2020, while benchmark U.S. 10-year bond yields languished near their lowest level since July,” said Modi.
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“Gold may trade between $2080 to $2095 levels with positive bias, and on the MCX it may trade between 63200 to 64000 levels. Sil, and on the MCX, between 75000 to 77000 levels. Overall, the trend is positive. Buy-on dips is recommended, says Anuj Gupta, Head of Commodity and Currency at HDFC Securities.
Deveya Gaglani, Research Analyst – Commodities of Axis Securities, said, “We are witnessing the Santa Claus rally in Gold. Prices rallied by more than 1 per cent in the last session, making a new multi-week high of 63600. In Comex, Prices managed to breach the strong resistance zone of the $2070 level, and they settled near the $2080 level, which is a positive sign. The dollar index is under selling pressure and made a new multi-month low of $100.9 as the probability of a rate cut in March increased, which boosted Bullion prices. Prices are approaching the previous swing high of Rs 64000 level. A weekly close above will be a bullish sign for gold prices, and it may touch Rs 65000 by next month.”