Gold opened on the Multi Commodity Exchange (MCX) on Thursday at Rs 62,724 per 10 grams and hit an intraday low of Rs 62,651. In the international market, prices hovered around $2,043.29 per troy ounce.
Meanwhile, silver opened at Rs 72,423 per kg, hit an intraday low of Rs 72,250 on the MCX, and hovered around $22.98 per troy ounce in the international market.
Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “Gold and silver dipped in the previous session, relinquishing some of the recent gains as the dollar rebounded amid some uncertainty over the timing of the Federal Reserve’s interest rate cuts in 2024.”
There was a correction after a strong run-up in the past few weeks on the back of early rate cut expectations in 2024. However, market participants seem to be seeking affirmation that the Fed will indeed begin trimming rates early in 2024.
Modi said, “Bets for rate cut in March also dropped from 75% in the last week to 65%, supporting an up-move in the Dollar Index and US Yields. In the Fed minutes yesterday, it acknowledged that some progress has been made towards the Fed’s 2% inflation target. However, rates are likely to be restrictive for some time.”
Hence, the focus now shifts to US jobs market data, i.e. private payrolls scheduled today and non-farm payroll data scheduled tomorrow, which could trigger further volatility in the market.
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“Yesterday, gold prices corrected by 1.19% and closed at 62,507 levels. Silver prices were corrected by 2.38% and closed at 72,333 levels. We are also seeing thin physical demand for gold and silver in the physical market,” said Anuj Gupta, Head of Commodity and Currency at HDFC Securities.
Deveya Gaglani, Research Analyst–Commodities, Axis Securities, says, “There is an inverse correlation between the Gold and Dollar index. Prices are range bound as investors await FOMC minutes, which may dictate Gold prices this week.”
Read More: Gold and Silver prices today: Yellow metal and silver dip as dollar rebounds