Gold and Silver Prices Remain Stable
Gold prices on the MCX remained steady at Rs 70,992 per 10 grams on Thursday, with an intraday low of Rs 70,870. In the international market, prices also showed stability, hovering around $2,302.70 per ounce.
In the silver market, the price on the MCX hovered at Rs 86,564 per kg and hit an intraday low of Rs 86,451. In the international market, the price hovered around $28.73 per ounce.
Anuj Gupta, Chief of Commodity and Currency at HDFC Securities, highlighted the challenges faced by both gold and silver due to the strength of the dollar index and the hawkish statements from Fed members. This pressure is further exacerbated by expectations of weakened demand from China and lower physical buying, leading to gold trading below $2,300 per ounce and silver below $29 per ounce.
Market Analysis and Projections
Deveya Gaglani, Senior Research Analyst at Axis Securities, emphasized the significance of the support level at $2,300 for gold prices, indicating a negative trend if prices continue to hover below this critical zone. Gaglani also pointed out the potential for further downward movement in gold prices, with strong support at the Rs 70,700 level on the MCX.
Kaynat Chainwala, AVP-Commodity Research at Kotak Securities, provided insights on the impact of stronger yields and a higher dollar on COMEX Gold prices, which closed near a three-week low. Chainwala highlighted the rising US 10-year yields as a factor increasing the opportunity cost of holding gold, contributing to the metal’s decline.
Market Response to Fed Statements
Fed Governor Michelle Bowman’s comments on sustained inflation and the uncertainty regarding rate cuts have influenced market sentiment. The likelihood of a 25bps Fed rate cut by September has slightly decreased, reflecting traders’ expectations for two quarter-point reductions within the year. This uncertainty regarding future monetary policy decisions is a key factor affecting the movement of gold and silver prices in the market.
Looking ahead, investors are keeping an eye on upcoming economic data releases such as weekly jobless claims, durable goods orders, and pending home sales to gain further insights into market trends and potential price movements.
