Gold and silver prices today: Yellow metal shows modest gain amidst Fed rate cut speculation, trading range stability

Gold opened on the Multi Commodity Exchange (MCX) on Friday at Rs 62,784 per 10 grams and hit an intraday low of Rs 62,711. In the international market, prices hovered around $2,048.45 per troy ounce.

Meanwhile, silver opened at Rs 75,763 per kg, hit an intraday low of Rs 75,623 on the MCX, and hovered around $24.40 per troy ounce in the international market.

Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “Gold prices inched slightly higher, but continue to trade in a range which was established over the past week as markets speculate the time Fed could begin rate cuts.”

Dovish signals from the Fed helped the metal break above the key $2,000; however, Fed official’s comments showed a shift in stance from the Fed policy meeting, making the market second guess the pace of rate cuts next year capped gains for metal.

US consumer confidence and existing home sales are continuously weighing on safe-haven assets. However, yesterday’s US GDP and Philly Fed manufacturing index were reported lower than expected, supporting gains for the metal.

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“US GDP was reported at 4.9% against estimates of 5.2% and previous data of 2.1%; similarly, the Philly Fed manufacturing index was reported at -10.5 against -3. Post these data points, US 10Y Yields were steady at 3.8%, but the dollar index fell below the 102 mark. Focus today shifts to US inflation data which could further trigger the market,” said Modi.

Anuj Gupta, Head of Commodity and Currency at HDFC Securities, said, “Yesterday gold prices increased and closed by 0.14% at 62503 levels. Silver prices closed down by 0.08% and closed at 65426 levels.”

“We have noticed a subdued market before Christmas; however, festival demand supports the gold and silver prices. For trading, gold may trade between $1940 and $1960 levels with a positive bias, and on the MCX, it may trade between 62300 and 63000 levels. Silver may trade between 75000 and 77000 levels. Overall, the trend is positive. Buy-on dips are recommended,” added Gupta.