Gold prices at the MCX on Tuesday was at Rs 71,300 per 10 grams, hitting an intraday low of Rs 70,893. In the international market, prices hovered around $2,314.71 per ounce.
Silver was at Rs 81,950 per kg, reaching an intraday low of Rs 81,057 on the MCX. In the international market, the price hovered around $26.63 per ounce.
COMEX Gold prices closed marginally down at the start of the week as investors await Fed policy and US Jobs data this week.
Data released last week showed both the headline and core US PCE rate rising by 0.3% in March.
Gold
MTD: 5.80%, 3925
YTD: 13.29%, 8399
Silver
MTD: 9.91%, 7435
YTD: 10.82%, 8053
Kaynat Chainwala, a seasoned Senior Manager-Commodity research at Kotak Securities, shared her insights, “Earlier this month, US CPI data revealed a 0.4% m/m increase in inflation in March, marking the third consecutive month of such rise. This suggests that the higher CPI readings at the beginning of the year were not an anomaly, and inflationary pressures are holding steady. This could lead the central bank to adopt a more aggressive stance tomorrow, potentially creating more challenges for gold prices.”
Echoing similar views, Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said, “Gold prices are finding support at Rs 71200 in MCX, paralleled by Comex Gold’s support at $2325. Weakness in the rupee has further bolstered MCX Gold’s support. The upcoming week promises significant momentum and volatility, largely influenced by key data releases. The US interest rate decision is particularly important, poised to impact gold strongly. Anticipation of two rate cuts could provide support for gold, whereas emphasis on higher rates for a longer duration may exert pressure. Hence, the week ahead is anticipated to be pivotal for gold markets.”