Gold and silver prices today: Yellow metal finds stability after recent plunge; dollar and US yields rally pauses
Gold prices opened on the Multi Commodity Exchange (MCX) on Wednesday at Rs 62,515 per 10 grams and hit an intraday low of Rs 62,480. In the international market, prices hovered around $2034.89 per troy ounce.
Meanwhile, silver opened at Rs 70,381 per kg and hit an intraday low of Rs 70,327 on the MCX. The price hovered around $22.35 per troy ounce in the international market.
Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “Gold prices steadied after tumbling sharply over the past week amid a rally in the dollar and US yields, while traders positioned for remarks from several Federal Reserve officials this week to gauge the likely pace of interest rate cuts this year.”
Strong US economic data and hawkish comments from Fed Chair Jerome Powell were the key drivers, weighing in metal prices. The dollar rallied to a near three-month high, while US Treasury yields also appreciated sharply in the face of higher for longer rates.
“Some bounce in yesterday’s session from a key support zone was seen in both gold and silver prices. Comments from Fed officials also kept the market participants on edge as they did mention a possible delay in rate cuts but also said that if the US economy performs as expected, it could open the door to rate cuts,” said Modi.
The CME Fedwatch tool showed traders pricing in an 83% chance the Fed will keep rates steady in March and were steadily dialling up bets for a similar move in May.
Amit Khare, Associate Vice President at GCL Broking, said, “April Gold closed at 62574(0.40%) and March Silver closed at 70594(0.10%), As per the daily chart, bullions are showing now some profit booking, Momentum Indicator RSI also indicating the same, below are the important levels for the day: Gold April Support 62400/62200 and Resistance 62600/62800. Silver March Support 70200/69700 and Resistance 71000/71800.”
Sachin Kothari, Director at Augmont Gold for All, said that in January 2024, the Indian government raised the import duty on gold and silver coins and findings from 11 to 15%. This comprises a 10% Basic Customs Duty and a 5% Agriculture Infrastructure Development Cess. “The fundamental goal was to standardise tax rates and hence avoid observed circumvention. This action was done to close a gap and bring duty on gold finds and coins in line with total customs duty rates on gold bars. This will eliminate trade sections that take advantage of duty arbitrage,” Kothari said.
