Gold and silver prices today: Yellow metal slips at week's start, silver closes in the red
Analysts say the current price is ideal for investment in gold and silver as the festival and marriage season demand is expected to pick up soon
- Aug 8, 2023,
- Updated Aug 8, 2023 10:43 AM IST
Gold prices opened on the Multi Commodity Exchange (MCX) on Tuesday at Rs 59,390 per 10 grams and hit an intraday low of Rs 59,374. In the international market, prices hovered around $1,933.11 per troy ounce. Meanwhile, silver opened at Rs 71,225 per kg and hit an intraday low of Rs 71,128 on the MCX. The price hovered around $23.15 per troy ounce in the international market.
Spot gold closed lower Monday as the yields were up on hawkish comments from the US Federal Reserve. Yields on 30-year German bonds rose 9 bps to the highest level since 2014 on a resilient economy. Equivalent US yields were up by 7 bps.
Spot gold closed with a loss of 0.39% at $1936.29. Two-year treasury yields rose1 bps over Friday's closing, while ten-year yields were up by 5 bps. The US Dollar Index was almost unchanged.
Amit Khare, Associate Vice President at GCL Broking, said, "MCX Gold and Silver gave negative closing yesterday, October Gold closed at 59420(-0.18%) and September Silver closed at 71268(-1.68%), Bullion's daily charts are trading at demand zone, good upside movement is possible in near future, momentum indicator RSI also indicating the same. So, traders are advised to take fresh buy positions in gold and silver near given support level one with the stop loss of support level two and book near given resistance levels: Gold October Support 59300/59000 and Resistance 59700/59900. Silver September Support 71000/70400 and Resistance 72000/72500."
"The current price is the best for investors to invest in gold and silver. Festival and marriage demand is ahead. So we can see good upside in gold and silver in the next 3-4 months," said Khare.
Gold price slipped at the start of this week because of hawkish comments from a few Fed officials supporting an up-move in the dollar index and U.S. yields.
Manav Modi, Analyst, Commodity and Currency, MOFSL, said, "Fed official Bowman, in remarks to an event in Atlanta largely reiterated comments from her previous speech that additional interest rate hikes would likely be needed to rein in inflation. On the other hand, John Williams, president of the Federal Reserve Bank of New York, expects that interest rates could begin to come down next year. Bullions did receive some support from the U.S. non-farm payroll data, which was reported at 187k against expectations of 200K last week. However, the unemployment rate was reported 0.1% lower and average hourly earnings were also reported better than expectations, weighing on bullions. Focus this week will be on inflation data from the U.S. that could offer more clarity on the Fed's policy stance and RBI policy meeting."
Praveen Singh – Associate V.P., Fundamental Currencies and Commodities, Sharekhan by BNP Paribas, said, "The U.S consumer credit expanded more than forecast in June, though outstanding revolving credit and credit card debt contracted, which shows that the U.S. consumer credit expansion is expected to come under pressure in the future."
German industrial production was disappointing, whereas European Sentix investor confidence data was better than expected. U.K.'s housing prices continued to decline in July on both m-o-m and y-o-y basis.
Turkey is planning to impose a quota on imports of unprocessed gold to reduce a negative impact on its current account balance. As per the Government data, imports of unprocessed gold rose 180% to $19.4 billion in the first seven months of this year on a y-o-y basis. Elsewhere, in a positive development for the yellow metal, China's central bank bought gold for the ninth consecutive month in July as its holdings rose by around 23 tons. The official sector is expected to continue buying gold this year, albeit at a slower rate as compared to last year.
Today's European data docket includes Germany's inflation (July) and the Euro-zone's ZEW economic sentiment (August) data.
Gold prices opened on the Multi Commodity Exchange (MCX) on Tuesday at Rs 59,390 per 10 grams and hit an intraday low of Rs 59,374. In the international market, prices hovered around $1,933.11 per troy ounce. Meanwhile, silver opened at Rs 71,225 per kg and hit an intraday low of Rs 71,128 on the MCX. The price hovered around $23.15 per troy ounce in the international market.
Spot gold closed lower Monday as the yields were up on hawkish comments from the US Federal Reserve. Yields on 30-year German bonds rose 9 bps to the highest level since 2014 on a resilient economy. Equivalent US yields were up by 7 bps.
Spot gold closed with a loss of 0.39% at $1936.29. Two-year treasury yields rose1 bps over Friday's closing, while ten-year yields were up by 5 bps. The US Dollar Index was almost unchanged.
Amit Khare, Associate Vice President at GCL Broking, said, "MCX Gold and Silver gave negative closing yesterday, October Gold closed at 59420(-0.18%) and September Silver closed at 71268(-1.68%), Bullion's daily charts are trading at demand zone, good upside movement is possible in near future, momentum indicator RSI also indicating the same. So, traders are advised to take fresh buy positions in gold and silver near given support level one with the stop loss of support level two and book near given resistance levels: Gold October Support 59300/59000 and Resistance 59700/59900. Silver September Support 71000/70400 and Resistance 72000/72500."
"The current price is the best for investors to invest in gold and silver. Festival and marriage demand is ahead. So we can see good upside in gold and silver in the next 3-4 months," said Khare.
Gold price slipped at the start of this week because of hawkish comments from a few Fed officials supporting an up-move in the dollar index and U.S. yields.
Manav Modi, Analyst, Commodity and Currency, MOFSL, said, "Fed official Bowman, in remarks to an event in Atlanta largely reiterated comments from her previous speech that additional interest rate hikes would likely be needed to rein in inflation. On the other hand, John Williams, president of the Federal Reserve Bank of New York, expects that interest rates could begin to come down next year. Bullions did receive some support from the U.S. non-farm payroll data, which was reported at 187k against expectations of 200K last week. However, the unemployment rate was reported 0.1% lower and average hourly earnings were also reported better than expectations, weighing on bullions. Focus this week will be on inflation data from the U.S. that could offer more clarity on the Fed's policy stance and RBI policy meeting."
Praveen Singh – Associate V.P., Fundamental Currencies and Commodities, Sharekhan by BNP Paribas, said, "The U.S consumer credit expanded more than forecast in June, though outstanding revolving credit and credit card debt contracted, which shows that the U.S. consumer credit expansion is expected to come under pressure in the future."
German industrial production was disappointing, whereas European Sentix investor confidence data was better than expected. U.K.'s housing prices continued to decline in July on both m-o-m and y-o-y basis.
Turkey is planning to impose a quota on imports of unprocessed gold to reduce a negative impact on its current account balance. As per the Government data, imports of unprocessed gold rose 180% to $19.4 billion in the first seven months of this year on a y-o-y basis. Elsewhere, in a positive development for the yellow metal, China's central bank bought gold for the ninth consecutive month in July as its holdings rose by around 23 tons. The official sector is expected to continue buying gold this year, albeit at a slower rate as compared to last year.
Today's European data docket includes Germany's inflation (July) and the Euro-zone's ZEW economic sentiment (August) data.