Gold and silver prices today: Yellow metal stable after profit booking

Gold opened on the Multi Commodity Exchange (MCX) on Wednesday at Rs 62,250 per 10 grams and hit an intraday low of Rs 62,201. In the international market, prices hovered around $ 2,024.90 per troy ounce.

Meanwhile, silver opened at Rs 75,454 per kg, hit an intraday low of Rs 75,319 on the MCX, and hovered around $24.24 per troy ounce in the international market.

Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “Gold price retreated on the back of some profit booking and also as dollar firmed up. The economic landscape is presenting mixed signals. The ISM Non-Manufacturing PMI exceeded market expectations by registering at 52.7, pointing to continued expansion in the service sector.”

However, the job openings and labour turnover survey (JOLTs) reported vacancies falling to a multi-year low of 8.733 million, suggesting some cooling in the labour market. Modi said, “Expectations for a rate cut early next year have also set the stage for both gold and silver prices. The CME Fed-Watch tool suggests a 60% probability of a rate cut in March.”

Along with expectations of loose monetary policy, market participants are also keeping an eye on the geopolitical tensions between Israel and Palestine, which is building the risk premium in safe-haven assets. Market participants are turning their attention to forthcoming labour data for additional insights into the economic direction. The ADP Employment Change report and nonfarm payrolls will be particularly scrutinised.

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Prithviraj Kothari, MD of RiddiSiddhi Bullions Limited (RSBL), said, “Gold prices have risen 15% in the last two months and are in overbought zone. Traders should be cautious and book long positions; we are likely to see a price correction now.”

Amit Khare, Associate Vice President at GCL Broking, said, "February Gold closed at 62185(-0.26%) and March Silver closed at 75279(-1.05%); as per daily chart, Bullions are looking strong and gave fresh break out in the daily chart. 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 62000/61800 and Resistance 62400/62600. Silver March Support 75000/74000 and Resistance 76000/77000.”