Gold and Silver Prices
Gold prices on the MCX hovered at Rs 72,363 per 10 grams on Thursday, hitting an intraday low of Rs 72,281. In the international market, prices maintained a similar trend, hovering around $2,353.18 per ounce. This stability in the gold market is influenced by various factors such as job numbers and geopolitical tensions.
Meanwhile, silver hovered at Rs 84,598 per kg and hit an intraday low of Rs 84,404 on the MCX. In the international market, the price hovered around $28.06 per ounce, showing a similar trend to gold prices.
Market Analysis
Manav Modi, an analyst in Commodities and currency at MOFSL, provides insights into the market situation, highlighting the signs of profit booking in both gold and silver prices. This analysis helps investors and traders make informed decisions based on the current market trends.
Bullion prices broke a two-week losing spree due to some safe-haven demand amid geopolitical uncertainties in regions like Israel and China. Geopolitical tensions often drive investors towards safe-haven assets like gold and silver, impacting their prices.
Impact of Economic Data
Modi mentions the market’s reaction to the larger-than-expected increase in weekly U.S. jobless claims and the softer nonfarm payroll reading for April. These events have reinforced expectations of a potential rate cut by the Federal Reserve, affecting gold and silver prices.
After the release of the jobs data, US yields fell sharply, and the dollar index traded firm near the 105.50 mark. Fed officials continued to express concerns about inflation, contributing to the market sentiment.
Future Outlook
Gaglani, Senior Research Analyst at Axis Securities, highlights the recent rally in gold prices driven by rate cut bets and weaker-than-expected data from the USA. Traders are now focused on upcoming economic indicators and Fed speeches for further cues on monetary policy.
Gaglani also points out key support and resistance levels for gold prices on the MCX, indicating potential areas of interest for traders in the coming sessions.
