Gold prices on the MCX hovered at Rs 72,363 per 10 grams on Thursday, hitting an intraday low of Rs 72,281. In the international market, prices maintained a similar trend, hovering around $2,353.18 per ounce. This indicates a certain level of stability in the gold market.
Meanwhile, silver hovered at Rs 84,598 per kg and hit an intraday low of Rs 84,404 on the MCX. In the international market, the price hovered around $28.06 per ounce.
Manav Modi, an analyst in Commodities and currency at MOFSL, provides valuable insights into the market situation. He states, “Signs of profit booking are being witnessed in both Gold and silver prices in the early market trade after posting gains last week, on the back of lower than expected job numbers and rise in geo-political tensions.” This analysis helps investors and traders understand the current market trends and make informed decisions.
Bullion prices broke a two-week losing spree, as some safe-haven demand remained in play amid bets that Israel and Hamas will not reach a ceasefire deal. Reports of fresh U.S. trade tariffs on China also sparked some safe-haven demand.
“A significant market event in the previous week was the bigger-than-expected increase in weekly U.S. jobless claims. This reading came just after a substantially softer-than-expected nonfarm payroll reading for April and reinforced expectations that a cooling labour market will push the Fed into cutting interest rates early,” explains Modi. This sequence of events highlights the market’s sensitivity to economic data and the potential impact on gold and silver prices.
After the jobs data, US yields fell sharply, while the dollar index traded firm near the 105.50 mark. Fed officials continued to raise inflation concerns and reiterated a higher-for-longer stance in their comments last week.
Modi further says, “Bets for a rate cut in the month of September increased slightly towards 50%. Focus this week will be on comments from several Fed officials and, Governor Powell and CPI from the US and India.”
Deveya Gaglani, Senior Research Analyst – Commodities, Axis Securities, said, “Gold prices extended its winning streak for two days in a row. Prices rallied by more than 1.5% last Friday and settled above a three-week high as rate cut bets increased this year after weaker-than-expected data print from the USA prompted investors to flock towards yellow metals.”
“Greenback has retraced below the strong support zone of $105.5, which has supported the precious metals pack. Now, traders will focus on this week’s Core PPI m/m and Fed speech to get cues regarding the monetary policy this year. Cluster of support in MCX is placed around Rs 71,000 level, and resistance is around 73,000 level,” added Gaglani.