Gold and silver prices today: Yellow metal dips in the last session

Gold prices opened on the Multi Commodity Exchange (MCX) on Friday at Rs 62,108 per 10 grams and hit an intraday low of Rs 62,033. In the international market, prices hovered around $2,026.10 per troy ounce.

Meanwhile, silver opened at Rs 70,154 per kg and hit an intraday low of Rs 70,054 on the MCX. The price hovered around $22.76 per troy ounce in the international market.

Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “Gold price slipped in the previous session from a near two-week high after jobless claims data indicated a strong economy, while investors awaited further economic data for guidance on the US Federal Reserve’s interest rate stance.”

The minutes of the Fed’s late-January meeting, released earlier this week, showed that the bank was in no hurry to begin cutting interest rates early. This notion was echoed by several Fed officials, who cited concerns over sticky inflation and persistent strength in the U.S. economy. 

The comments saw traders largely wipe out expectations for rate cuts in March and May and also raised doubts over rate cut possibilities in the June Fed meeting.

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“The CME FedWatch tool showed traders pricing in a 53.6% chance for a 25 bps cut in June and a 28.7% chance for rates to remain steady. The latter rose from a 19.7% chance seen last week,” said Modi.

Data showed that the number of Americans filing new claims for unemployment benefits unexpectedly fell last week, suggesting a strong labour market. The US Manufacturing PMI and Existing home sales were also reported better than expected in yesterday's session, weighing on safe-haven assets. No major data points from the US are scheduled today on the calendar.

On the other hand, COMEX Gold continues to trade in a narrow range amid uncertainty regarding the timing of when the US central bank will pivot to monetary easing.

Fed Vice Chair Philip Jefferson and Governor Lisa Cook said they’re optimistic inflation is still cooling despite a blip in January. However, they clarified that they want more evidence that it’s headed back to their 2% target before lowering borrowing costs. This aligned with the January FOMC meeting minutes, which showed policymakers remains attentive to the trajectory of inflation, with some worried that progress toward the central bank’s 2% target could stall. Still, the yellow metal is poised for a weekly gain amid heightened geo-political tensions, Fed policy uncertainty and an easing dollar, per Kotak Securities research report. 

COMEX Silver prices closed lower on Thursday, as higher yields and weakness in bullions weighed on the investor risk sentiments. Weak Factory output from the UK and Eurozone was countered by robust US Manufacturing PMI. Chinese demand concerns continue to limit any gains despite recent support measures. Data released earlier today showed that Chinese home prices declined further in Jan, though at a slower pace.