Gold and silver prices today: Yellow metal dips due on US economy boost and strong dollar

Gold opened at Rs 59,166 per 10 grams on the Multi Commodity Exchange (MCX) on Tuesday, dipping to an intraday low of Rs 59,000. Internationally, gold prices hovered around $1,914.60 per troy ounce. Silver began at Rs 70,600 per kg, hitting an intraday low of the same value on the Multi Commodity Exchange, and $22.52 per troy ounce globally. 

Anuj Gupta, Head of Commodity and Currency at HDFC Securities, said, “Gold prices closed on a negative note down by 0.40 per cent and closed at 59166 levels. After reports of a ceasefire between Hamas and Israel we saw some profit booking on higher levels in the gold.” 

However, gold and silver prices rocketed 4 per cent and 5 per cent, respectively, last week and showed a stellar performance as escalating geopolitical tensions improved safe-haven demand. Prithviraj Kothari, MD CEO of RiddiSiddhi Bullions Limited, said because of escalating tensions between Israel and Hamas and increased anticipation that the US Federal Reserve would not raise interest rates further this year, precious metals had their best week in seven months. The next resistance for Gold is $1965 (Rs 60000), prices need to sustain above this level to continue its bull run. While Silver has formed a bullish reversal pattern on weekly charts. “It seems the bottom has been made for the short term and the rally is expected to continue towards $24 (Rs 73500). As the auspicious period of Navratri has started, it is best time to buy precious metals,” said Kothari. 

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Praveen Singh, Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas, said, “Spot gold closed with a loss of nearly 0.50 per cent at $1921, whereas the ten-year US yields were up around 2.50 per cent to close at 4.72 per cent. Risk appetite improved, thus the Dollar Index edged lower by around 0.40 per cent to close at 106.21.” 

Gold prices fell and were weighed down by a stronger dollar following better-than-expected economic number from the US. Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “Last week, CPI figures showed inflation remained unchanged from the previous release but were above expectations of 3.6per cent. The yield on the US 10-year Treasury note rose to 4.7 per cent yesterday. The FOMC minutes from last week showed that policymakers are willing to maintain interest rates higher for longer as inflation is unacceptably high. Market participants will keep an eye on the Israel-Hamas conflict whether it would spill over into the Middle East region, as Israel prepares a ground offensive in the Gaza strip along with fresh commentary from Fed officials this week for further clues on the US central bank’s rate outlook.” 

Amit Khare, Associate Vice President at GCL Broking, said, “December Gold closed at 59140 (-0.45 per cent) and December Silver closed at 71060 (-0.32 per cent), As per the daily chart, Bullions are showing some profit booking. We can see some correction in coming future. Momentum Indicator RSI also indicates the same. Traders are advised to book their longs and can make fresh short positions in Gold and Silver near the given residence level one with the stop loss of resistance level two and book near given support levels: Gold December Support 58900/58700 and Resistance 59200/59500. Silver December Support 70000/69000 and Resistance 71200/72200.”