Gold and silver prices today: Yellow metal continues to trade in narrow range, dollar hovers around 6-month high

Gold prices opened on the Multi Commodity Exchange (MCX) on Monday at Rs 58,884 per 10 grams and hit an intraday low of Rs 58,846. In the international market, prices hovered around $1,923.5 per troy ounce. Meanwhile, silver opened at Rs 73,251 per kg and hit an intraday low of Rs 73,163 on the MCX. The price hovered around $23.49 per troy ounce in the international market.

Anuj Gupta, Head of Commodity and Currency at HDFC Securities, said that yesterday, gold prices sharply increased by 0.21 per cent and closed at 58,946 levels because of lower buying activity in the physical market. However, the higher dollar index curbed the sharp appreciation in gold prices. The dollar index was trading higher yesterday after a hawkish statement given by the FOMC. "FOMC kept interest steady but indicated to hike one more this year. In the international market, gold is trading at $1923 levels. For trading, gold may trade between $1915 to $1930 levels; on MCX, it may trade between 58500 and 59300 levels. It may test $1915 to $1920 levels as dollar index trading higher due to hawkish statement from Fed," said Gupta.

Spot gold closed with a gain of 0.31 per cent at $1925 on Friday as the metal gained in line with the U.S. bonds.

Praveen Singh, Associate V.P., Fundamental Currencies and Commodities, Sharekhan by BNP Paribas, said, "Total known global gold ETF holdings fell for the sixteenth straight day through September 21. The data shows that investing demand remains poor. Thus, central banks buying gold is one of the major supports for the metal. U.S. bonds can come under renewed pressure this week as some $134 billion front-end loaded treasury coupon supply is lined up. Yields edging higher will put the metal under pressure. Support is at $1915/$1900. Resistance is at $1932/$1950."

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Moreover, Amit Khare, Associate Vice President at GCL Broking, said, "October Gold closed at 58946 (0.21 per cent) and December Silver closed at 73337 (0.37 per cent). Bullion's daily charts are looking positive. Momentum Indicator RSI also indicates the same, So traders are advised to make 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 58800/58600 and Resistance 59100/59200. Silver December Support 72600/71900 and Resistance 73500/74000."

Gold prices continue to trade in a narrow range as investors assessed U.S. Federal Reserve officials' warning of further interest rate hikes ahead of a consumer inflation gauge due later this week.

The dollar hovered around a more than six-month high, while benchmark 10-year Treasury yields were near their 16-year peak.

Manav Modi, analyst of commodity and currency Motilal Oswal Financial Services, said that Fed officials warned on Friday of further rate hikes even after voting to hold the benchmark rate steady last week, with three policymakers saying they remain uncertain the inflation battle is finished. "Along with the Fed, BoE and BoJ also kept their rate unchanged, keeping the market participants on edge regarding further interest rate change. U.S. business activity showed little change in September, while a separate survey showed the eurozone economy is likely to contract this quarter and won't return to growth anytime soon. Focus this week will be on various data points from the U.S. like GDP, inflation, consumer confidence and Core durables goods orders data."

Comments from Fed Governor Powell are also expected to give a statement later this week.