Gold and silver prices today: Yellow metal gains slightly on back of softened US 10-year yields
Analysts say all eyes will be on the annual Jackson Hole Symposium later this week for clues on how high interest rates can go
- Aug 23, 2023,
- Updated Aug 23, 2023 10:57 AM IST
Gold prices opened on the Multi Commodity Exchange (MCX) on Thursday at Rs 58,600 per 10 grams and hit an intraday low of Rs 58,574. In the international market, prices hovered around $1,897.25 per troy ounce. Meanwhile, silver opened at Rs 72,260 per kg and hit an intraday low of Rs 72,111 on the MCX. The price hovered around $23.41 per troy ounce in the international market.
Praveen Singh, Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas, said, “Two-year US yields at 5.05% were up by 0.82%, while 10-year yields settled 0.30% lower at 4.33%. The US Dollar Index was 0.27% higher as it closed at 103.60. Total known global gold ETF holdings fell for the seventh straight day through August 21; the global gold ETF holdings now stand at twenty-eight month low.”
Yesterday, spot gold closed with a minor gain of 0.21% at $1897.87. The metal was slightly up as the 10-year US yields were a bit softer on disappointing US existing home sales (July) and Philadelphia Fed non-manufacturing (August) data. Fed’s Barkin said that the US economy could reaccelerate before inflation cools down.
Today is global manufacturing and services PMI data day. Japan’s services and manufacturing PMIs data were slightly better than expected, whereas Australian data disappointed. Ahead in the day, focus will be on services and manufacturing PMIs data of Germany, Eurozone, the UK and the US. Apart from these PMIs, US new home sales (July) will also be released today.
“The US Dollar Index faces a strong resistance at 103.75. Firm yields and weak Chinese economy continue to support the Greenback. Stronger than expected US PMIs or weaker than expected European PMIs or growing concerns about Chinese economy may boost the US Dollar Index further to challenge this level, which may weigh on the yellow metal. Support is at $1885/$1865, while resistance is at $1920,” said Singh.
Adding to it, Amit Khare, Associate Vice President at GCL Broking, said, “October Gold closed at 58574 (0.14%), and September Silver closed at 71,982 (0.46%), Bullion’s daily charts are trading at demand zone, any time we can see short covering rally in bullions. Momentum Indicator RSI also indicates the same. So traders are advised to make fresh buy positions in Gold and Silver near the given support level one with a stop-loss of support level two and book near the given resistance levels: Gold October Support 58400/58200 and Resistance 58700/59000. Silver September Support 71500/70500 and Resistance 72500/73000.”
Gold price inched higher and stabilised around the $1,900 mark amidst a slight pullback in US dollar and Treasury yields ahead of a central bankers’ gathering that could provide cues on interest rates outlook.
Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “The dollar index was sitting below two-month highs, while a rally that took U.S. Treasury yields to nearly 16-year highs took a pause.”
On the data front, US existing home sales dropped to a six-month-low in July, data showed. More housing numbers from the US this week will be in focus that could show overall strength in the sector.
US Fed official Thomas, in his comments, said that the US central bank must be open to the possibility that the economy will begin to reaccelerate rather than slow, with potential implications for the U.S. central bank’s inflation fight.
“The annual Jackson Hole Symposium in Wyoming later this week will be monitored for any hints on how high interest rates can go. SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.5% on Tuesday, continuously weighing on market sentiment. Focus today will also be on the preliminary manufacturing and services PMI data from major economies,” said Modi.
Gold prices opened on the Multi Commodity Exchange (MCX) on Thursday at Rs 58,600 per 10 grams and hit an intraday low of Rs 58,574. In the international market, prices hovered around $1,897.25 per troy ounce. Meanwhile, silver opened at Rs 72,260 per kg and hit an intraday low of Rs 72,111 on the MCX. The price hovered around $23.41 per troy ounce in the international market.
Praveen Singh, Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas, said, “Two-year US yields at 5.05% were up by 0.82%, while 10-year yields settled 0.30% lower at 4.33%. The US Dollar Index was 0.27% higher as it closed at 103.60. Total known global gold ETF holdings fell for the seventh straight day through August 21; the global gold ETF holdings now stand at twenty-eight month low.”
Yesterday, spot gold closed with a minor gain of 0.21% at $1897.87. The metal was slightly up as the 10-year US yields were a bit softer on disappointing US existing home sales (July) and Philadelphia Fed non-manufacturing (August) data. Fed’s Barkin said that the US economy could reaccelerate before inflation cools down.
Today is global manufacturing and services PMI data day. Japan’s services and manufacturing PMIs data were slightly better than expected, whereas Australian data disappointed. Ahead in the day, focus will be on services and manufacturing PMIs data of Germany, Eurozone, the UK and the US. Apart from these PMIs, US new home sales (July) will also be released today.
“The US Dollar Index faces a strong resistance at 103.75. Firm yields and weak Chinese economy continue to support the Greenback. Stronger than expected US PMIs or weaker than expected European PMIs or growing concerns about Chinese economy may boost the US Dollar Index further to challenge this level, which may weigh on the yellow metal. Support is at $1885/$1865, while resistance is at $1920,” said Singh.
Adding to it, Amit Khare, Associate Vice President at GCL Broking, said, “October Gold closed at 58574 (0.14%), and September Silver closed at 71,982 (0.46%), Bullion’s daily charts are trading at demand zone, any time we can see short covering rally in bullions. Momentum Indicator RSI also indicates the same. So traders are advised to make fresh buy positions in Gold and Silver near the given support level one with a stop-loss of support level two and book near the given resistance levels: Gold October Support 58400/58200 and Resistance 58700/59000. Silver September Support 71500/70500 and Resistance 72500/73000.”
Gold price inched higher and stabilised around the $1,900 mark amidst a slight pullback in US dollar and Treasury yields ahead of a central bankers’ gathering that could provide cues on interest rates outlook.
Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “The dollar index was sitting below two-month highs, while a rally that took U.S. Treasury yields to nearly 16-year highs took a pause.”
On the data front, US existing home sales dropped to a six-month-low in July, data showed. More housing numbers from the US this week will be in focus that could show overall strength in the sector.
US Fed official Thomas, in his comments, said that the US central bank must be open to the possibility that the economy will begin to reaccelerate rather than slow, with potential implications for the U.S. central bank’s inflation fight.
“The annual Jackson Hole Symposium in Wyoming later this week will be monitored for any hints on how high interest rates can go. SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.5% on Tuesday, continuously weighing on market sentiment. Focus today will also be on the preliminary manufacturing and services PMI data from major economies,” said Modi.