Gold and silver prices today: Yellow metal inches higher in low-volume Asian trade

Gold opened on the Multi Commodity Exchange (MCX) on Wednesday at Rs 63,198 per 10 grams and hit an intraday low of Rs 63,179. In the international market, prices hovered around $2,048.45 per troy ounce.

Meanwhile, silver opened at Rs 75,231 per kg, hit an intraday low of Rs 75,110 on the MCX, and hovered around $24.40 per troy ounce in the international market.

Manav Modi, Analyst, Commodity and Currency, MOFSL, said, "Gold inched higher in low-volume Asian trade on Tuesday, as soft U.S. inflation data fueled more bets on early interest rate cuts in 2024 and weighed on Dollar index and US Yields."

Weaker than expected reading on the PCE price index- the Federal Reserve’s preferred inflation gauge, which came following dovish signals from the Fed during its final meeting for 2023, ramped up hopes that the central bank could begin trimming interest rates by as soon as March 2024, added Modi.

The NY manufacturing index was reported lower than expected in the previous week. However, yesterday, the Philly Fed non-manufacturing index was reported better than expected, weighing on bullion.

Modi said, "CME Group’s FedWatch tool showed traders pricing in an over 70% chance for a 25 basis point cut in March 2024, but a slew of Fed officials warned that bets on early rate cuts by the central bank may be overly optimistic. Volatility could be a bit lower today as no major economic data points are scheduled on the calendar."

Anuj Gupta, Head of Commodity and Currency at HDFC Securities, said, “We have noticed that the dollar index is trading at 5-month low levels, which supports the Bullion as a safe-haven demand."

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The Dollar Index is trading at 5-month low levels after the Federal Reserve kept interest rates steady and signalled deeper cuts for next year as inflation is expected to cool faster than initially anticipated.  

"For trading, gold may trade between $1960 and $1975 levels with a positive bias, and on mcx, it may trade between 62800 and 63500 levels. Silver may trade between 75000 and 77000 levels. Overall, the Trend is positive. Buy-on dips is recommended," said Gupta.

Amit Khare, Associate Vice President at GCL Broking, said, "MCX Gold and Silver gave mixed closings yesterday, February Gold closed at 63025(0.12%), and March Silver closed at 75026(-0.48%). As per the daily chart, Bullions are showing some profit booking time."