Gold and silver prices today: Yellow metal hovers near three-week low as US bond yields rise
Experts say they expect short covering after Thursday's correction
- Aug 4, 2023,
- Updated Aug 4, 2023 10:12 AM IST
Gold prices opened on the Multi Commodity Exchange (MCX) on Tuesday at Rs 59,410 per 10 grams and hit an intraday low of Rs 59,310. In the international market, prices hovered around $1,935.38 per troy ounce. Meanwhile, silver opened at Rs 72,312 per kg and hit an intraday low of Rs 72,250 on the MCX. The price hovered around $23.53 per troy ounce in the international market.
Spot gold closed with a loss of 0.54% at $1933.56 as back-end US yields extended their surge on increased auction sizes. The ten-year U.S. yields rallied 2.16% to close at 4.179%. Two-year yields were flat at 4.885%.
Praveen Singh – Associate V.P., Fundamental Currencies and Commodities, Sharekhan by BNP Paribas, said, "The U.S. Dollar Index closed with a loss of 0.12% at 102.36. A preliminary reading of Q2 U.S. unit labour cost was noted at 1.60% vs the forecast of 2.50%. US ISM non-manufacturing data for July stood at 52.70, which was short of the forecast of 53.10, though ISM services price paid rose from 54.10 in June to 56.80 in July. The Employment Index slid to 50.70 from 53.10. As expected, the Bank of England hiked the benchmark rate by 25 bps as it made future monetary policy decisions data dependent."
"Today's U.S. non-farm payroll report for July will be crucial for the metal. Going by ADP, an upside risk to the data exists; however, June ADP data overestimated the nonfarm payroll data, so caution is warranted," added Singh.
Yesterday, gold prices corrected by 0.07% and closed at 59432 levels on the back of strength in the dollar index. Gold seems to be in a sideways zone.
Anuj Gupta, Vice President of IIFL Securities, said, "We noticed that positive U.S. economy data pulled down demand for the yellow metal as a safe haven. Technically, prices are on support levels, and we expect short covering after yesterday's correction."
Gupta sees technically strong support at 59000 levels, then 58700 levels, and Resistance at 59700 and 60000 levels. "Today, one can buy on dips around 59000-59100 levels with a stop-loss of 58700 and for the target of 59600 to 59700 levels. Gold may test $1940 to $1945 levels in international markets."
Gold is hovering near an over three-week low because of a rise in US yields, while investors remained cautious ahead of July U.S. non-farm payrolls data.
Manav Modi, Analyst, Commodity and Currency, MOFSL, said, "The dollar is steady around its four-week high; U.S. 10-year Treasury yields rose to their highest since November. The U.S. private payrolls increased more than expected in July, pointing to continued labour market resilience. The number of Americans filing new claims for unemployment benefits rose slightly last week.”
The U.S. Services PMI was reported weaker than expectations, while the factory orders were better than expectations, 2.3% against 0.4% previously reported.
“While market participants digested Fitch's downgrade of the U.S. credit rating, one more central bank, i.e. BOE, raised its interest rate by 25 bps, the highest in 15 years. Today's focus will be on the important U.S. jobs market data, which, if reported better than expectations, could further weigh on safe-haven metals," added Modi.
Amit Khare, Associate Vice President at GCL Broking, said, "Bullion daily charts are trading at the demand zone. Good upside movement is possible soon. 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 the stop loss of support level two and book near the given resistance levels: Gold October Support 59300/59100 and Resistance 59700/59900. Silver September Support 72200/71500 and Resistance 73500/74000."
Gold prices opened on the Multi Commodity Exchange (MCX) on Tuesday at Rs 59,410 per 10 grams and hit an intraday low of Rs 59,310. In the international market, prices hovered around $1,935.38 per troy ounce. Meanwhile, silver opened at Rs 72,312 per kg and hit an intraday low of Rs 72,250 on the MCX. The price hovered around $23.53 per troy ounce in the international market.
Spot gold closed with a loss of 0.54% at $1933.56 as back-end US yields extended their surge on increased auction sizes. The ten-year U.S. yields rallied 2.16% to close at 4.179%. Two-year yields were flat at 4.885%.
Praveen Singh – Associate V.P., Fundamental Currencies and Commodities, Sharekhan by BNP Paribas, said, "The U.S. Dollar Index closed with a loss of 0.12% at 102.36. A preliminary reading of Q2 U.S. unit labour cost was noted at 1.60% vs the forecast of 2.50%. US ISM non-manufacturing data for July stood at 52.70, which was short of the forecast of 53.10, though ISM services price paid rose from 54.10 in June to 56.80 in July. The Employment Index slid to 50.70 from 53.10. As expected, the Bank of England hiked the benchmark rate by 25 bps as it made future monetary policy decisions data dependent."
"Today's U.S. non-farm payroll report for July will be crucial for the metal. Going by ADP, an upside risk to the data exists; however, June ADP data overestimated the nonfarm payroll data, so caution is warranted," added Singh.
Yesterday, gold prices corrected by 0.07% and closed at 59432 levels on the back of strength in the dollar index. Gold seems to be in a sideways zone.
Anuj Gupta, Vice President of IIFL Securities, said, "We noticed that positive U.S. economy data pulled down demand for the yellow metal as a safe haven. Technically, prices are on support levels, and we expect short covering after yesterday's correction."
Gupta sees technically strong support at 59000 levels, then 58700 levels, and Resistance at 59700 and 60000 levels. "Today, one can buy on dips around 59000-59100 levels with a stop-loss of 58700 and for the target of 59600 to 59700 levels. Gold may test $1940 to $1945 levels in international markets."
Gold is hovering near an over three-week low because of a rise in US yields, while investors remained cautious ahead of July U.S. non-farm payrolls data.
Manav Modi, Analyst, Commodity and Currency, MOFSL, said, "The dollar is steady around its four-week high; U.S. 10-year Treasury yields rose to their highest since November. The U.S. private payrolls increased more than expected in July, pointing to continued labour market resilience. The number of Americans filing new claims for unemployment benefits rose slightly last week.”
The U.S. Services PMI was reported weaker than expectations, while the factory orders were better than expectations, 2.3% against 0.4% previously reported.
“While market participants digested Fitch's downgrade of the U.S. credit rating, one more central bank, i.e. BOE, raised its interest rate by 25 bps, the highest in 15 years. Today's focus will be on the important U.S. jobs market data, which, if reported better than expectations, could further weigh on safe-haven metals," added Modi.
Amit Khare, Associate Vice President at GCL Broking, said, "Bullion daily charts are trading at the demand zone. Good upside movement is possible soon. 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 the stop loss of support level two and book near the given resistance levels: Gold October Support 59300/59100 and Resistance 59700/59900. Silver September Support 72200/71500 and Resistance 73500/74000."