Gold prices opened on the Multi Commodity Exchange (MCX) on Thursday at Rs 65,205 per 10 grams and hit an intraday low of Rs 65,205. In the international market, prices hovered around $2,156.24 per troy ounce.

Meanwhile, silver opened at Rs 74,444 per kg and hit an intraday low of Rs 73,840 on the MCX. The price hovered around $24.13 per troy ounce in the international market.

Manav Modi, Analyst, Commodity and Currency, MOFSL, “Gold rallied to a record high building on stellar momentum driven mostly by bets for U.S. monetary easing.”

The dollar index slipped in the yesterday’s session after Governor Jerome Powell’s testimony, where he signalled a possible rate cut later this year.

Governor Powell in his testimony reiterated his stance from earlier, mentioning that the Fed does not expect a rate cut until there is more confidence regarding ease off in inflation.

Fed chair also mentioned that the labour market is still tight, and they will carefully assess incoming data before taking any further steps.

“Bets for a rate cut in the June Fed meeting have increased from 40% last month to ~60% now, supporting an up-move in safe-haven assets,” said Modi.

On the data front, US ADP private payroll data was reported at 140k against the expectations of 149k, The focus now shifts to the non-farm payroll data scheduled tomorrow to get further clarity on the US labour market and the Fed’s stance ahead.

Jateen Trivedi, VP Research Analyst, LKP Securities, said, “Prices managed to maintain levels above 64650, albeit encountering resistance around the 64900 mark. This suggests a consolidation phase in the gold market today, following a recent strong uptrend from 62500 to 65000.”

“Market participants are closely monitoring the testimony of Federal Reserve Chair Powell, as it is expected to provide significant insights into the Fed’s projection regarding interest rate cuts in the United States. This event could potentially influence gold prices in the near term, as market sentiment and expectations regarding monetary policy shifts often have a notable impact on precious metal markets,” added Trivedi.

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COMEX Gold futures rose for the sixth straight day and touched a fresh record high of $2160.7 per troy ounce amid weak US data, renewed concerns about the US banking sector and Powell’s testimony, as per Kotak Securities research report.

COMEX Silver prices rose on Wednesday, tracking gains in bullions and base metals. Still, lack of signs of robust economic recovery from China coupled with weak factory output across major economies continue to weigh on demand prospects.

Meanwhile, China’s 5% bullish growth target for 2024 was seen as a target without plans and failed to entice investors. Chinese inflation numbers during the weekend will be used to gauge whether the recent support measures have aided consumption, as per Kotak Securities research report.