Gold and silver prices today: Yellow metal strengthens, but may be headed for weekly dip amid hawkish Fed remarks
The price of gold slightly increased while resisting inflation concerns but is anticipated to finish the week with a decrease.
- Sep 8, 2023,
- Updated Sep 8, 2023 11:06 AM IST
Gold prices opened on the Multi Commodity Exchange (MCX) on Friday at Rs 59,146 per 10 grams and hit an intraday low of Rs 59,103. In the international market, prices hovered around $1,924.20 per troy ounce. Meanwhile, silver opened at Rs 72,080 per kg and hit an intraday low of Rs 71,915 on the MCX. The price hovered around $23.08 per troy ounce in the international market.
Anuj Gupta, Head of Commodity and Currency at HDFC Securities, said, “Yesterday, gold prices closed down by 0.15 per cent and closed at 58998 levels on the back of strength in dollar index. The dollar index is now trading above 104.80 levels on the expectation of a hike in interest rates by the U.S. Federal Bank in the upcoming meeting. Positive U.S. economic data on unemployment claims put pressure on gold and support the dollar index. Trading gold may trade between $1910 to $1935 levels, and on MCX it may trade between 58500 to 59300 levels with negative bias.”
Spot gold closed with a gain of 0.20 per cent at $1920. The two-year U.S. yields at 4.95 per cent were 1.50 per cent lower, whereas tens settled 0.85 per cent lower at 4.25 per cent.
Praveen Singh, Associate V.P., Fundamental Currencies and Commodities, Sharekhan by BNP Paribas, said, “Lower U.S. yields helped gold avert a steep decline that could have come on the U.S. initial jobless claims falling to the lowest level since February and US unit labour cost (Q2 final) rising by 2.20 per cent versus the forecast of 1.90 per cent. The US Dollar Index whipsawed on both sides of the key psychological resistance level of 105 before settling with a gain of 0.17 per cent at 105.05.”
Germany’s industrial production (July) fell 0.80 per cent, worse than expected decline of 0.40%. The Euro-zone’s 2Q GDP (final) reading was revised lower to 0.10 per cent from the previous estimate of 0.30% as even the y-o-y reading at 0.50 per cent trailed the estimate of 0.60 per cent.
“Japan’s Q2 (final) GDP released this morning disappointed as data was revised lower from 1.50 per cent to 1.30 per cent versus the forecast of 1.20 per cent. Today’s other major data releases include Germany’s CPI inflation (August final). China’s CPI (August) data will be released on Saturday. Gold is vulnerable as the yields continue to remain elevated,” said Singh.
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Gold prices firmed but were set for a weekly decline as the dollar and treasury yields held firm. Signs of sticky inflation pushed up concerns that the Federal Reserve could maintain its hawkish rhetoric.
Amit Khare, Associate Vice President at GCL Broking, said, "October Gold closed at 58998(-0.17%) and December Silver closed at 71770(-0.98%). Bullions daily charts are looking good, trading near the demand Zone. Momentum Indicator RSI also indicates the same. 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 58850/58600 and Resistance 59100/59300. Silver December Support 71500/70700 and Resistance 72300/73000."
Economic data points also showed some resilience in the U.S. economy, further sapping safe-haven demand for bullions.
Manav Modi, Analyst, Commodity and Currency, MOFSL, said, "Amidst these economic data points, the dollar is headed for its longest weekly winning streak in nine years. New filings for state unemployment benefits fell unexpectedly last week to the lowest level since February and showed a tight labour market even after an aggressive rate hike spell."
Fed officials, this entire week, have been preparing the market for its Sept. Fed meeting; New York Fed President Williams kept his options open over the interest rate policy ahead, acknowledging an ease off in inflation and a balanced economy, suggesting there is no urgency for a rate rise later this month.
"Dallas Fed president mentioned that more rate hikes could be needed, but the Fed could skip one in the September meeting. China held 69.62 million fine troy ounces of gold at the end of August, up from 68.69 million ounces at the end of July. Apart from fed officials' comments, no major data is scheduled on the calendar from the U.S.," said Modi.
Gold prices opened on the Multi Commodity Exchange (MCX) on Friday at Rs 59,146 per 10 grams and hit an intraday low of Rs 59,103. In the international market, prices hovered around $1,924.20 per troy ounce. Meanwhile, silver opened at Rs 72,080 per kg and hit an intraday low of Rs 71,915 on the MCX. The price hovered around $23.08 per troy ounce in the international market.
Anuj Gupta, Head of Commodity and Currency at HDFC Securities, said, “Yesterday, gold prices closed down by 0.15 per cent and closed at 58998 levels on the back of strength in dollar index. The dollar index is now trading above 104.80 levels on the expectation of a hike in interest rates by the U.S. Federal Bank in the upcoming meeting. Positive U.S. economic data on unemployment claims put pressure on gold and support the dollar index. Trading gold may trade between $1910 to $1935 levels, and on MCX it may trade between 58500 to 59300 levels with negative bias.”
Spot gold closed with a gain of 0.20 per cent at $1920. The two-year U.S. yields at 4.95 per cent were 1.50 per cent lower, whereas tens settled 0.85 per cent lower at 4.25 per cent.
Praveen Singh, Associate V.P., Fundamental Currencies and Commodities, Sharekhan by BNP Paribas, said, “Lower U.S. yields helped gold avert a steep decline that could have come on the U.S. initial jobless claims falling to the lowest level since February and US unit labour cost (Q2 final) rising by 2.20 per cent versus the forecast of 1.90 per cent. The US Dollar Index whipsawed on both sides of the key psychological resistance level of 105 before settling with a gain of 0.17 per cent at 105.05.”
Germany’s industrial production (July) fell 0.80 per cent, worse than expected decline of 0.40%. The Euro-zone’s 2Q GDP (final) reading was revised lower to 0.10 per cent from the previous estimate of 0.30% as even the y-o-y reading at 0.50 per cent trailed the estimate of 0.60 per cent.
“Japan’s Q2 (final) GDP released this morning disappointed as data was revised lower from 1.50 per cent to 1.30 per cent versus the forecast of 1.20 per cent. Today’s other major data releases include Germany’s CPI inflation (August final). China’s CPI (August) data will be released on Saturday. Gold is vulnerable as the yields continue to remain elevated,” said Singh.
Also read: 80% of foreign tourists state QR-powered UPI influences their travel experiences: Survey
Also read: I’m 35 and earn Rs 2 lakh a month. How much and in which mutual fund schemes should I invest?
Gold prices firmed but were set for a weekly decline as the dollar and treasury yields held firm. Signs of sticky inflation pushed up concerns that the Federal Reserve could maintain its hawkish rhetoric.
Amit Khare, Associate Vice President at GCL Broking, said, "October Gold closed at 58998(-0.17%) and December Silver closed at 71770(-0.98%). Bullions daily charts are looking good, trading near the demand Zone. Momentum Indicator RSI also indicates the same. 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 58850/58600 and Resistance 59100/59300. Silver December Support 71500/70700 and Resistance 72300/73000."
Economic data points also showed some resilience in the U.S. economy, further sapping safe-haven demand for bullions.
Manav Modi, Analyst, Commodity and Currency, MOFSL, said, "Amidst these economic data points, the dollar is headed for its longest weekly winning streak in nine years. New filings for state unemployment benefits fell unexpectedly last week to the lowest level since February and showed a tight labour market even after an aggressive rate hike spell."
Fed officials, this entire week, have been preparing the market for its Sept. Fed meeting; New York Fed President Williams kept his options open over the interest rate policy ahead, acknowledging an ease off in inflation and a balanced economy, suggesting there is no urgency for a rate rise later this month.
"Dallas Fed president mentioned that more rate hikes could be needed, but the Fed could skip one in the September meeting. China held 69.62 million fine troy ounces of gold at the end of August, up from 68.69 million ounces at the end of July. Apart from fed officials' comments, no major data is scheduled on the calendar from the U.S.," said Modi.