Gold opened on the Multi Commodity Exchange (MCX) on Wednesday at Rs 62,883 per 10 grams and hit an intraday low of Rs 62,771. In the international market, prices hovered around $2,045.68 per troy ounce.
Meanwhile, silver opened at Rs 75,326 per kg, hit an intraday low of Rs 75,310 on the MCX, and hovered around $25 per troy ounce in the international market.
Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “Gold price hit a seven-month on Comex and an all-time high on domestic front amid weak economic data, weakening US yields and expectations of a loose monetary policy, because of which investors are heading for a strategic shift towards the precious metal in portfolios.”
Yesterday, the US 10-year yields was down almost 1% and is currently trading around the 4.2% mark, while the dollar index is also trading below the 103 mark.
On the data front, US consumer confidence was reported better than expected, but the previous month’s data was revised lower, below the 100 mark, supporting safe-haven assets.
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“US Fed policymakers look increasingly comfortable closing out the year with interest rates on hold and waiting before lowering them,” said Modi. Fed officials have said they are “increasingly confident” that policy is in the right spot.
Fed officials also mentioned that inflation was still high, and it was premature to rely on productivity growth gains for any change in the Fed’s stance. “This week, investors will monitor US personal consumption expenditure (PCE) data, the Fed’s preferred inflation indicator and the revised US Q3 GDP figures,” said Modi.
Amit Khare, Associate Vice President at GCL Broking, said, “December Gold closed at 62311(1.25%) and December Silver closed at 75270(0.62%). As per the daily chart, Bullions are looking strong. Traders are advised to make fresh buy positions in Gold and Silver near the given support level one with the stop loss of support level two and book near the given resistance levels: Gold December Support 62200/61900 and Resistance 62500/62700. Silver December Support 75000/74400 and Resistance 76000/76500.”