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Gold, silver prices: Gold prices on track for biggest weekly gain in nearly two months

Gold, silver prices: Gold prices on track for biggest weekly gain in nearly two months

Hopes of a pause in the US Fed’s monetary tightening campaign have bolstered bullion’s appeal.

Navneet Dubey 
Navneet Dubey 
  • Updated Jun 2, 2023 12:27 PM IST
Gold, silver prices: Gold prices on track for biggest weekly gain in nearly two months In the international market, gold prices are around $1,980.47 per troy ounce

Gold prices on Multi Commodity Exchange (MCX) opened on Friday at Rs 60,301 per 10 gram and are on track to see the biggest weekly gain in nearly two months, having risen by around 6% per cent this week. In the international market, gold prices are around $1,980.47 per troy ounce, up by 0.12 per cent over Thursday.

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Similarly, Silver prices opened at Rs 72,999 per kg levels and hit an intra-day low of Rs 72,827 on the MCX. The price on the international market is around $23.96 per troy ounce, up by 0.13 per cent compared with Thursday.

Manav Modi, analyst of commodity and currencies at Motilal Oswal Financial Services (MOFSL), said: “After witnessing volatility in the past few sessions, gold prices are on track for their biggest weekly gain in nearly two months, as hopes of a pause in the US central bank’s policy tightening campaign bolstered bullion’s appeal. In a surprising turn of events, after a mixed set of comments from US Fed officials in the past few weeks, market participants have once again started to discount the probability of a pause in the June meeting. According to CME Fed-Watch tool, there is more than 70 per cent chance of a pause, supporting bullions."

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Modi added: “The House of Representatives yesterday, voted to advance a Bill to raise the US debt ceiling. The Bill now will be sent to the Senate, which will also need to approve the measure in order for it to be signed into the law by US President Joe Biden and go into effect ahead of a looming June 5 deadline. Amidst an ease off in debt ceiling concerns, market participants started discounting a pause in a rate hike cycle for the next meeting. After a steady move on higher side, the dollar index and US yields are both down by 0.6 per cent and 4 per cent, respectively, this week. On the data front, the US Jobs market continued to show strength as ADP private payroll data was reported better than expectations. All eyes now are on US non-farm payroll data.”

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Besides, gold prices continued to rise on Thursday amid weak US dollar and decline in US treasury yields. Further, weaker US economic figures and comments from Fed officials reinforced expectations that central bank will hit a pause button at its upcoming meeting.

Raj Deepak Singh, Analyst – Commodity, Currency, & Derivatives, ICICI direct, said, "The last biggest weekly gain was 6.5% in international prices seen on 13th March 2023 week. Gold prices were up by 5.8% during that week in Indian Rupee. MCX gold prices may move north towards 61200 levels as long it stays above major support levels of 58800 levels”

Published on: Jun 2, 2023 11:03 AM IST
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