Gold and silver prices today: Precious metals under pressure

Gold prices opened on the Multi Commodity Exchange (MCX) on Thursday at Rs 62,155 per 10 grams and hit an intraday low of Rs 62,120. In the international market, prices hovered around $2,029 per troy ounce.

Meanwhile, silver opened at Rs 70,724 per kg and hit an intraday low of Rs 70,647 on the MCX. The price hovered around $22.97 per troy ounce in the international market.

Manav Modi, Analyst, Commodity and Currency, MOFSL, said, "Gold and silver prices witnessed some pressure in yesterday’s session ahead of the FOMC meeting minutes on the back of firm Dollar Index and US 10Y Yields. The Federal Open Market Committee (FOMC) meeting of the Federal Reserve showed members remained significantly concerned about rising inflation despite the Fed’s monetary policy tightening likely having peaked."

The minutes showed that FOMC members want to see more progress on reaching the Fed’s 2% annual inflation level before lowering interest rates. The marketplace is likely deeming the minutes slightly hawkish, but not unexpected. Fed policymakers continuously have prepared the market for a delay in rate cuts for this year; Fed official Thomas Barkin said the latest economic data highlighted how price pressures were still too high. On the war front, Israel intensified its bombardment of Rafah in Gaza's south, as the ruined Palestinian enclave's health ministry announced 29,313 deaths in the war so far.

“Today, the focus will be on Preliminary Manufacturing and Services PMI from major economies. Gold on the domestic front could trade in a range of Rs 61,700–62,500,” said Modi.

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Jateen Trivedi, VP Research Analyst, LKP Securities, said, "Gold prices remained within a narrow range, fluctuating between 62150 and 62275, while Comex Gold experienced similar range-bound movements, trading between $2032 and $2026. Market participants eagerly await the release of the FED's meeting minutes later tonight, which could provide insights into future monetary policy decisions."

“The outcome of the FED's meeting minutes may define the trend for Gold, which has been trading in a range between 62000 and 62400. Investors are closely monitoring any signals or indications from the FED regarding its stance on interest rates and inflation, as these factors are likely to influence the direction of Gold prices in the near term,” Trivedi added.