Gold and Silver prices today: Yellow metal holds steady as the dollar index and US yields rise, silver slips
Gold opened on the Multi Commodity Exchange (MCX) on Wednesday at Rs 63,258 per 10 grams and hit an intraday low of Rs 63,257. In the international market, prices hovered around $2,063.70 per troy ounce.
Meanwhile, silver opened at Rs 73,971 per kg, hit an intraday low of Rs 73,968 on the MCX, and hovered around $23.69 per troy ounce in the international market.
Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “Gold started the new year on a steady note as on the one hand dollar index and US yields inched higher while on other rate cut expectations by Fed held ground on the lower end.”
The dollar index rose 0.8%, reversing from its recent lows and is on track for its biggest daily gain since July; US 10-year yields also inched higher, hovering around the 3.9% mark.
The possibility of an escalation of tensions in the Red Sea and updates regarding other geopolitical tensions supported gold prices at lower levels.
The CME’s FedWatch Tool shows traders pricing in an over 70% chance that the Fed will cut rates by 25bps in March. However, we have one more meeting before the March reading, and the central bank still has to contend with a slew of economic readings, particularly on inflation and the labour market, to gauge the health of the overall economy.
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Fed officials warned in December that the central bank would need to see more cooling in the two trends to consider trimming interest rates early. Fed officials also warned that bets on early rate cuts by the Fed were overly optimistic.
Modi said, “This week, market attention is on the minutes, scheduled for tomorrow, of the last Fed meeting. Data on U.S. job openings and December non-farm payrolls, both due on Friday, will also be closely followed.”
Amit Khare, Associate Vice President at GCL Broking, said, “MCX gold and silver gave negative closing yesterday; February Gold closed at 63257(-0.10%), and March Silver closed at 74095(-0.40%).”
“Traders are advised to make fresh buy positions in Gold and Silver near the given support level one with the stop loss of support level two and book near the given resistance levels: Gold February Support 63100/62800 and Resistance 63500/63700. Silver March Support 74000/73400 and Resistance 75000/75500,” added Khare.
