Gold prices on the Multi Commodity Exchange (MCX) opened at Rs 62,215 per 10 grams, experiencing an intraday low of Rs 62,181. Internationally, gold prices hovered around $2,030.19 per troy ounce. Simultaneously, silver opened at Rs 70,948 per kg, with an intraday low of Rs 70,762 on the MCX, while internationally, it maintained around $22.41 per troy ounce.
Manav Modi, Commodity and Currency Analyst at MOFSL, noted that gold and silver prices were slightly declining as investors awaited upcoming economic data for trading cues. The delay in rate cut expectations was also identified as a factor restraining price gains.
Federal Reserve officials’ comments supported the idea that the central bank was not rushing to loosen policy due to persistent inflation. The dollar remained near three-month highs, trading between the 103.50-104 mark, and the US 10Y Yield edged higher, hovering around 4.2%.
Despite lower-than-expected US Core durables goods orders and Consumer confidence data, there was minimal impact on bullion prices. A second reading on Q4 GDP data was anticipated to show mild cooling in the US economy, but not to the extent that it would prompt the Fed to loosen policy. The PCE price index data, the Fed’s preferred inflation gauge, was scheduled for the following day, with expectations that inflation would remain sticky.
Jateen Trivedi, VP Research Analyst at LKP Securities, reported a positive rally in MCX gold prices, reaching Rs 62,350, supported by a rise in Comdex Gold. The positive momentum was attributed to the weakness observed in the dollar index. Trivedi highlighted that market dynamics suggested strong demand around the 62,000 mark, with visible supply around 62,650. Looking ahead, important US data releases, including GDP, CB Consumer Confidence, Core PCE Price Index, and US Manufacturing data, were expected to induce volatility in gold prices throughout the week.
