Gold and silver prices today: Yellow metal price continues to trade higher

Gold opened on the Multi Commodity Exchange (MCX) on Monday at Rs 62,193 per 10 grams and hit an intraday low of Rs 61,957. In the international market, prices hovered around $2,023.63 per troy ounce.

Meanwhile, silver opened at Rs 74,525 per kg, hit an intraday low of Rs 74,425 on the MCX, and hovered around $23.92 per troy ounce in the international market.

Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “Gold price continues to trade higher, extending a push above key levels on the back of dovish signals from the Federal Reserve, which sparked steep losses in the dollar and Treasury yields.”

The US Fed said it was done raising interest rates and will consider interest rate cuts in 2024. The dot plot signalled at least three rate cuts by the central bank, with the first one coming as soon as March 2024. The dollar slid to four-month lows after the Fed, while Treasury yields fell across the board, with the 10-year rate breaking below 4%.

“Fed Fund futures prices point to an over 70% chance the bank will cut rates by 25 basis points in March 2024. Fed official William, however, mentioned in his speech that it is a bit early to think about rate cuts, weighing on safe-haven assets. On the data front, focus this week will shift to US GDP, consumer confidence and Core PCE price index data,” said Modi.

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Amit Khare, Associate Vice President at GCL Broking, said, "MCX Gold and Silver gave negative closing yesterday; February Gold closed at 62192(-0.50%) and March Silver closed at 74525(-0.70%). As per the daily chart, bullions look strong. FOMC keeps key rates unchanged and signals 3 rate cuts in 2024, So the fundamentals are positive for the market. Momentum Indicator RSI also indicates some positive change, So 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 February Support 62000/61700 and Resistance 62400/62600. Silver March Support 74200/73500 and Resistance 76000/77000."

Prithviraj Kothari, Managing Director at RiddiSiddhi Bullions Limited (RSBL), said, "Gold prices have risen almost 10% in International markets and almost 15% in Indian markets. Gold has created a triple top resistance around $2080 (~ Rs 63000) in the last three years."

"In 2023, Gold prices attempted to clear this resistance for a single day to touch $2150 (~ Rs 64500), but did not sustain. A lot of positive news, follow-through buying and fear would be required for prices to surpass that level. Once it does, though, the possibility is that the bull run won't end until $2250–$2300 (~Rs 68000–Rs 69000). While on the downside, prices have formed a base around $1900 (~Rs 58000), which would act as the floor of this bull run," added Kothari.