Gold and silver prices saw mixed movements in both the domestic and international markets on Tuesday.
On the Multi Commodity Exchange (MCX), gold opened at Rs 65,609 per 10 grams and hit an intraday low of Rs 65,604. In the international market, gold prices hovered around $2159.15 per ounce.
Meanwhile, silver opened at Rs 75,575 per kg on the MCX and reached an intraday low of Rs 75,520. In the international market, silver prices were around $25.11 per ounce.
Anuj Gupta, Chief of Commodity and Currency at HDFC Securities, noted that gold prices had a slight increase and closed at Rs 65,608, while silver closed on a negative note at Rs 75,496. The market’s focus is currently on the upcoming Federal Reserve meeting and its statement on interest rates.
In the COMEX market, gold prices closed marginally higher on Monday, ahead of several central bank decisions expected this week. The dollar index and treasury yields saw gains, limiting gold’s upside. However, geopolitical tensions remained high, providing support to the safe-haven metal.
Now, all eyes are on the Federal Open Market Committee (FOMC) meeting scheduled for Wednesday, where the Federal Reserve is expected to maintain interest rates. Investors will closely watch for any updated projections and guidance from Fed Chair Jerome Powell regarding the timing of rate cuts.
Deveya Gaglani, Research Analyst – Commodities at Axis Securities, highlighted that gold prices witnessed a smart recovery in the last session. Traders are awaiting the FOMC decision, with expectations of a potentially less dovish approach from policymakers due to recent hotter-than-expected CPI data. However, the short-term trend for gold prices appears strong as long as the support level of Rs 64,500 is maintained.
In the COMEX silver market, prices closed lower on Monday amidst mixed sentiments in industrial metals and marginal gains in gold prices. Chinese economic data showed positive figures, but doubts lingered over whether policymakers would enhance support to boost demand.
Overall, market participants are closely monitoring central bank decisions and geopolitical developments for further cues on the direction of gold and silver prices.
