Gold prices hold steady after inching lower in earlier trading session

Gold opened on the Multi Commodity Exchange (MCX) on Thursday at Rs 59,903 per 10 grams and hit an intraday low of Rs 59,843. In the international market, prices hovered around $1,948.85 per troy ounce. Meanwhile, silver opened at Rs 70,450 per kg, hit an intraday low of Rs 70,218 on the MCX, and hovered around $22.43 per troy ounce in the international market.

Anuj Gupta, Head of Commodity and Currency at HDFC Securities, said, “Gold prices yesterday corrected sharply by 0.56% and closed at a three-week low of 60009. We noticed profit booking in gold and silver before Diwali.”

The dollar index held steady against its rivals after three sessions of gains; while US 10-year yields held near their lowest in more than a month. The dollar index is trading at 105.40 levels, and bond yields are also cooling off, which is positive for gold in the long run.

Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “Gold price trade steady after inching lower in the earlier trading sessions on the back of firm dollar, mixed comments from Fed officials and signs of ease off in the geopolitical tensions.”

Governor Powell, in his speech yesterday, did not comment on monetary policy or the economic outlook in prepared remarks at a U.S. Central Bank statistics conference; he is scheduled to speak at another conference today.  

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A slew of Fed officials who spoke this week maintained a balanced tone on the central bank’s next decision, but noted they would focus on more economic data and the impact of higher long-term bond yields.

“The European Central Bank needs to see further progress in dampening inflationary pressures, and companies along with governments will need to chip in to prevent more policy tightening, ECB policymakers said. Focus today will be on US weekly jobless claims data,” said Modi.

Amit Khare, Associate Vice President at GCL Broking, said, “MCX Gold and Silver gave mixed closings yesterday, December Gold closed at 60000 (-0.58%) and December Silver closed positive at 70951(0.45%). As per daily chart, bullions' charts are showing some profit booking. Traders are advised to book their longs and can make fresh short positions in Gold and Silver near given residence level one with the stop loss of resistance level two and book near given support levels: Gold December Support 59800/59600 and Resistance 60150/60450. Silver December Support 70200/69800 and Resistance 71100/71800.”