Gold prices rise amid 2024 rate cut expectations: Investors await key economic data from US

Gold opened on the Multi Commodity Exchange (MCX) on Tuesday at Rs 63,329 per 10 grams and hit an intraday low of Rs 63,329. In the international market, prices hovered around $2,067.40 per troy ounce.

Meanwhile, silver opened at Rs 74,545 per kg, hit an intraday low of Rs 74,508 on the MCX, and hovered around $23.85 per troy ounce in the international market.

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Anuj Gupta, Head of Commodity and Currency at HDFC Securities, said, “Yesterday, gold prices increased by 0.19% and closed at 63,320 levels. Silver prices corrected by 0.05% and closed at 74390 levels.”

Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “Gold prices edged higher, supported by the prospect of interest rate cuts by the US Federal Reserve in 2024. Investors are looking forward to a slew of economic data points this week for more clarity on the US rate outlook.”

The economic data points from the US this past week were weaker than expected, supporting an up-move in bullions. Chicago PMI and existing home sales from the US were reported lower than the estimates in the previous week, showing some weakness in the housing sector and overall economy.

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However, after hovering around five-month lows, the dollar index has seen a reversal, trading now around 101.60; similarly, the US 10-year yields are also higher, trading around the 3.9% mark.

Modi said, “Bets for interest rate cuts from the US Fed have firmed following cooler inflation data, with traders now pricing in a 75% chance of monetary policy easing in March, according to the CME Fed-Watch tool.”

“Today, market participants will monitor manufacturing PMI expected from major economies. This week’s focus will be on minutes from the last Fed meeting and US data on US jobs market data,” said Modi.

Amit Khare, Associate Vice President at GCL Broking, said, “February Gold closed at 63,320 (0.19%), and March Silver closed at 74,390 (-0.02%). 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 February Support 63200/62900 and Resistance 63600/64000. Silver March Support 74100/73600 and Resistance 75000/75500.”