Gold opened on the Multi Commodity Exchange (MCX) on Tuesday at Rs 61,117 per 10 grams and hit an intraday low of Rs 61,110. In the international market, prices hovered around $1,992.95 per troy ounce. Meanwhile, silver opened at Rs 72,492 per kg, hit an intraday low of Rs 72,261 on the MCX, and hovered around $23.11 per troy ounce in the international market.
Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “Gold prices were flat hovering around the psychological level of $2,000, as investors prepared for central bank meetings this week with particular focus on the US Federal Reserve’s policy outlook.”
On the back of geopolitical tensions, the rush for safety has set bullion on track for an 8% rise this month, the most since November 2022. US Treasury yields have retreated from recent peaks but remain elevated, with the 10-year bond yield reaching a level not seen since 2007 at 5.02%, while the dollar index is firm above the 106 mark.
Modi said, “After better-than-expected US GDP and core durables goods orders data last week, investors’ focus now is on the US Fed’s two-day monetary policy meeting, followed by the US monthly jobs report on Friday. The Bank of England’s policy decision is also due this week, which could provide triggers to the Dollar Index.”
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Anuj Gupta, Head of Commodity and Currency at HDFC Securities, said, “The escalation between Israel and Hamas is supportive of bullion. Silver increased by 1.50% and closed at 72790 levels. For trading, gold may trade between $1990 to $1205 levels, and on the MCX, it may trade between 60900 to 61500 levels. Silver may trade between 70600 and 73500 levels.”
Amit Khare, Associate Vice President at GCL Broking, said, “December Gold closed at 61268 (0.15%) and December Silver closed at 72790 (1.50%). As per the daily chart, Bullion's structure is looking positive; we can see some further upside movement in the coming future. Traders are advised to make fresh buy positions in Gold and Silver near-given support level one with the stop loss of support level two and book near-given resistance levels: Gold December Support 61100/60800 and Resistance 61500/61700. Silver December Support 72200/71200 and Resistance 73300/73600.”