Investors are closely watching the central bank meetings scheduled for this week, with particular attention on the U.S. Federal Reserve’s policy outlook. This heightened scrutiny coincides with the ongoing geopolitical tensions between Israel and Hamas, which have propelled gold prices to around $2,000, putting bullion on a trajectory for an 8% increase this month, according to Manav Modi from MOFSL.
At the opening on Tuesday, gold on the Multi Commodity Exchange (MCX) started at Rs 61,117, with an intraday low of Rs 61,110. On the international market, gold prices hovered around $1,992.95 per troy ounce. Silver also saw a slight uptick, commencing at Rs 72,492 per kg and reaching an intraday low of Rs 72,261 on MCX before ultimately closing 1.50% higher at 72790 levels.
The market is reacting to the retreat of U.S. Treasury yields, although they still remain relatively high. The 10-year bond yield recently reached a level not seen since 2007, at 5.02%. Simultaneously, the dollar index remains firm, staying above the 106 mark.
Investors are keeping a keen eye on the U.S. Federal Reserve’s two-day monetary policy meeting and the U.S. monthly jobs report set for release on Friday. Additionally, they are closely monitoring the Bank of England’s policy decision expected later this week. These events have gained significance in light of better-than-expected U.S. GDP and core durable goods orders data.
Regarding trading predictions, gold is expected to fluctuate within the range of $1,990 to $2,005 levels, while silver could range between 70,600 and 73,500 levels. The overall outlook for bullion appears positive, and traders are advised to consider establishing fresh buy positions in both gold and silver near the given support levels. On Tuesday, December Gold closed at 61,268, marking a 0.15% increase.
