Gold prices opened on the Multi Commodity Exchange (MCX) on Tuesday at Rs 65,932 per 10 grams and hit an intraday low of Rs 65,932. In the international market, prices hovered around $2,179.08 per troy ounce.

Meanwhile, silver opened at Rs 74,459 per kg and hit an intraday low of Rs 74,459 on the MCX. The price hovered around $24.44 per troy ounce in the international market.

Manav Modi, Analyst, Commodity and Currency, MOFSL, “Gold prices steadied just below record highs, with focus turning largely to upcoming US inflation data for more cues on when the Federal Reserve will begin cutting interest rates.”

Expectations of rate cuts saw bullion prices rise sharply to record highs last week on the back of weak economic data from the US, rate cut expectations, a fall in the dollar index and US Yields and an increase in speculative net long positions.

“Hawkish comments from Fed officials, however, have capped the gains on the higher side. Middling labour market data, which indicated some cooling in US employment, also aided bullion prices,” said Modi.

“US non-farm payroll data was reported at 275,000 against expectations of 195,000; however, this was offset by an increase in the unemployment rate, which was reported at 3.9% against the previous data of 3.7%. US inflation will be closely watched this week, especially after Powell and a string of Fed officials signalled that anxiety over sticky inflation was the central bank’s biggest consideration in lower interest rates,” said Modi.

The reading is expected to show some cooling inflation through February, although inflation is still expected to remain well above the Fed’s 2% annual target.

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Deveya Gaglani, Research Analyst—Commodities, Axis Securities, said, “Gold prices posted their best weekly gain of 4% last week as the probability of a rate cut increased in June. Due to geopolitical tension, Gold gained traction because of its safe-haven nature. Prices reached a record high of Rs 66,300 in the domestic market.”

“Investors will focus on CPI data, which is due in the evening. If inflation data comes hotter than expected, gold prices may correct down by 2-3%. However, the outlook remains positive as long as the 64500 level is intact on the downside,” said Gaglani.

Ravindra Rao, Head Commodity Research, Kotak Securities, said, “COMEX Gold prices rose for the eighth consecutive day as signs of a slowdown in the US economy raised the odds of a Fed pivot this year, weighing down on dollar index and treasury yields. According to Bloomberg forecasts, US CPI is expected to rise 0.4% m/m (3.1% y/y) in February, while core CPI is expected to rise 0.3% m/m (3.7% y/y). If the ongoing disinflationary trend continues, that might add to rate cut bets and boost gold prices.”