After Fed’s Dovish Comments, Gold and Silver Prices Rise
Following the dovish comments made by the Federal Reserve, gold prices saw a modest increase of over Rs 900 and opened at Rs 72,460 per 10 grams on Thursday. Similarly, silver also experienced a gain of over Rs 2,000 since the Fed’s commentary, opening at Rs 91,904/kg.
Solid Gains in Gold and Silver
Gold and silver both posted solid gains after the Fed’s commentary and profit-taking in the dollar index. On Wednesday, gold August futures contract settled at Rs 72,403 per 10 grams with a gain of 1.19%, while silver September futures contract settled at Rs 92,021 per kilogram with a gain of 2.37%.
Fed’s Stance and Market Expectations
Fed Chairman’s statement at the European Central Bank’s conference in Portugal indicated that while steps have been taken to reduce inflation, the central bank is looking for more evidence that inflation is moving towards the target rate of 2.0% before considering any changes in monetary policy.
Additionally, market expectations for two rate cuts this year have increased, further supporting bullion prices. The dollar index slipped below 105 levels, and US economic data showed favorable conditions for bullion markets, with jobless claims rising to 2,38,000, ADP non-farm employment declining to 1,50,000, ISM services PMI dropping to 48.8, and factory orders contracting by 0.5%.
Insight: The US job reports later this week will likely have a significant impact on gold and silver prices as investors await further economic indicators.
Intraday Range Analysis
Manoj Kumar Jain of Prithivifinmart Commodity Research provided an intraday range for gold and silver:
– At MCX, gold has support levels at 72,150-71,880 and resistance at 72,660-72,850.
– MCX silver has support at 91,450-90,700 and resistance at 92,800-93,350.
Jain also noted, “We expect range bound movement in gold and silver in today’s session due to holiday in the U.S.”
Overall, the outlook for gold and silver prices remains volatile, with ongoing developments in the US economic landscape influencing market sentiments.
