Category: Gold News, News

Gold and silver prices today: Yellow metal dips again

Gold prices opened on the Multi Commodity Exchange (MCX) on […]

Gold prices opened on the Multi Commodity Exchange (MCX) on Tuesday at Rs 62,261 per 10 grams and hit an intraday low of Rs 62,220. In the international market, prices hovered around 28.27 per troy ounce.

Meanwhile, silver opened at Rs 70,451 per kg and hit an intraday low of Rs 70,318 on the MCX. The price hovered around $22.45 per troy ounce in the international market.

Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “Gold price fell yesterday, extending losses from the previous week as a mix of strong labour market data and hawkish Federal Reserve signals saw markets dial back expectations for early interest rate cuts.”

The dollar index rose 0.5% to trade near a three-month high around the 104.50 mark, while yields on benchmark 10-year Treasury notes climbed over a one-week high, hovering around 4.15%.

A substantially stronger-than-expected nonfarm payrolls reading for January showed continued resilience in the world’s largest economy- which gives the Fed more headroom to keep rates higher for longer.

Over the weekend, Fed Chair Jerome Powell said in an interview that the bank would remain prudent in considering any monetary loosening this year and that resilience in the U.S. economy gives it more room to keep rates higher for longer. 

The CME Fed watch tool showed traders having now almost entirely negated bets on a March rate cut and were sharply paring bets on a May rate cut. Several Fed officials continue to believe that the rate cut could start in the second half of this year.

Services PMI data from the major economies was reported better than expected. “Investors’ focus now shifts to remarks from a host of Fed speakers this week for further clues on the timing of rate cuts,” said Modi.

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Deveya Gaglani, Research Analyst – Commodities, Axis Securities, said, “Gold prices extended the losing streak in the last session as the Fed Chairman indicated that a rate cut is not on the table as of now after better-than-expected data print from the USA last week indicated that the sky-high interest rate is being absorbed and the economy is resilient.”

“Yesterday gold prices corrected sharply by 0.39% and closed at 62316 levels and silver prices also corrected sharply by 1.02% and closed at 70480 levels,” said Anuj Gupta, Chief of Commodity and Currency at HDFC Securities.

“Prices are heading towards the strong support zone of 62000 level. A weekly close below the mentioned level will be a bearish sign, and it may touch the 61500 level, or else it will continue to trade in a range between the 62000 and 63000,” said Gaglani.

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Written by : Editorial team of BIPNs

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