Investors worldwide are closely monitoring this week’s central bank meetings, with particular focus on the upcoming policy outlook from the US Federal Reserve. This heightened scrutiny comes amidst rising geopolitical tensions between Israel and Hamas, which have, in turn, propelled gold prices to approach the $2,000 mark, setting bullion on track for an impressive 8% surge this month, as noted by Manav Modi from MOFSL.
On Tuesday, the gold market opened at Rs 61,117 per 10 grams on MCX, with an intraday low of Rs 61,110. In the international arena, gold prices hovered around $1,992.95 per troy ounce. The silver market also witnessed a slight increase, opening at Rs 72,492 per kilogram and reaching an intraday low of Rs 72,261 on MCX. Ultimately, silver concluded the session with a 1.50% increase, settling at 72,790 levels.
The financial market is also responding to the retreat of US Treasury yields, although these yields remain notably high. The 10-year bond yield recently reached a level that has not been witnessed since 2007, standing at 5.02%. Simultaneously, the dollar index maintains its strong position above the 106 mark.
Investors are keeping a keen eye on the US Federal Reserve’s two-day monetary policy meeting, as well as the release of the US monthly jobs report scheduled for Friday. Additionally, attention is directed towards the Bank of England’s policy decision expected later this week. These events have gained significant importance, particularly in light of the better-than-expected data related to the US GDP and core durable goods orders.
Regarding trading predictions, gold is anticipated to fluctuate within the range of $1,990 to $1,205 levels. In the silver market, the expected range lies between 70,600 and 73,500 levels. Overall, the structure of the bullion market appears positive, leading traders to consider fresh buy positions in both gold and silver, especially near the provided support levels. The closing figures for December Gold stand at 61,268, reflecting a 0.15% increase.
