Gold prices opened at Rs 62,270 per 10 grams on the Multi Commodity Exchange (MCX) today, hitting an intraday low of Rs 62,248. In the international market, gold prices hovered around $2,034.78 per troy ounce.
Simultaneously, silver commenced trading at Rs 70,841 per kg on the MCX, reaching an intraday low of Rs 70,841. In the global market, silver prices were around $22.5 per troy ounce.
On the COMEX, gold prices exhibited fluctuations ahead of the US Personal Consumption Expenditure (PCE) data and closed marginally lower on the previous day. Investors maintained caution amid mixed signals. The decline in yields and the dollar, following a downward revision in the US Q4 GDP, provided some support. The US economy expanded by an annualized 3.2% in Q4 2023, slightly below the 3.3% in the advance estimate.
Three Federal Reserve officials stated that the pace of interest-rate cuts would depend on incoming economic data, suggesting a nuanced approach compared to previous rate-cutting cycles. Boston Fed President Susan Collins and New York’s John Williams mentioned that the Fed’s first rate cut would likely be later in the year, while Atlanta’s Raphael Bostic indicated a cut in the summer. The focus today will be on the Fed’s preferred PCE price index.
The core PCE is anticipated to rise by 0.4% m/m, the second consecutive monthly acceleration. This inflation gauge, which has been receding over the past two years, might face headwinds if the data exceeds expectations.
COMEX Silver prices experienced extended declines, closing at a two-week low due to weakness in industrial metals driven by concerns over Chinese demand. Hawkish comments from Fed officials influenced bullion despite a decline in the dollar and yields following the downward revision in US GDP data for Q3.
Jateen Trivedi, VP Research Analyst at LKP Securities, noted that gold prices faced weakness driven by the strength observed in the US Dollar index, which surpassed $104. This, coupled with a lack of substantial support from data releases, led to continued weakness. Traders and investors are advised to closely monitor upcoming data releases and market dynamics for potential trading opportunities.
