Gold and silver prices today: Yellow metal edges lower in early trade

Gold opened on the Multi Commodity Exchange (MCX) on Monday at Rs 60,719 per 10 grams and hit an intraday low of Rs 60696. In the international market, prices hovered around $1,980.39 per troy ounce. Meanwhile, silver opened at Rs 72,997 per kg, hit an intraday low of Rs 72,905 on the MCX, and hovered around $23.73 per troy ounce in the international market.

Deveya Gaglani, Research Analyst–Commodities, Axis Securities, said, “Gold prices rallied higher last week by more than 2 per cent as the probability increased that the Fed will not hike rates after cooler-than-expected inflation data and weak print from the US dragged the dollar index lower, which supported gold prices. The dollar index posted its worst weekly decline since mid-July. It settled around $103.82 level and was down by more than 1.87%. It may boost gold prices if it continues to drift lower.”

All eyes will be on the release of the minutes of the FOMC meeting this week. “Gold may trade between $1970 to $1995 levels, and on the MCX, it may trade between 60500 to 61500 levels. Silver may trade between 72000 and 75000,” said Anuj Gupta, Head of Commodity and Currency at HDFC Securities.

Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “Gold prices edged lower in early morning trade, after hitting a two-week high in the last session, weighed by a slight uptick in the US.”

Treasury yields and mixed US economic data points have boosted bullion. The dollar index was largely under pressure in the previous week, hovering around the 104 mark, while the US 10-year yield inched higher after marking a low of 4.38%.

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“Softer-than-expected US inflation data fuelled bets for a definite Fed pause, US CPI, PPI and industrial production were reported lower than estimates. US weekly jobless claims also were reported higher, showing some weakness in the labour market. However, housing-related numbers towards the end of last week showed some strength weighing on bullion. CME Fed-Watch tool suggests that the probability for a pause in the December Fed meeting is at 99%.”

Over the weekend, there were some updates regarding an ease off in the dispute between Israel and Palestine, this could weigh on bullion. Volatility today could be low as no major economic data points are scheduled from the US.

Amit Khare, Associate Vice President at GCL Broking, said, “December Gold closed at 60745(.04%) and December Silver closed negative at 73140(-0.25%). As per daily chart Bullions are looking strong now. Momentum Indicator RSI also indicating the same. 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 60600/60300 and Resistance 61000/61200. Silver December Support 73000/72000 and Resistance 74000/74500.”