Gold and silver prices today: Yellow metal edges higher as US dollar and Treasury yields dip

Gold opened on the Multi Commodity Exchange (MCX) on Wednesday at Rs 60,166 per 10 grams and hit an intraday low of Rs 60,156. In the international market, prices hovered around $1,965.45 per troy ounce. Meanwhile, silver opened at Rs 71,794 per kg, hit an intraday low of Rs 71,721 on the MCX, and hovered around $23.12 per troy ounce in the international market.  

Anuj Gupta, Head of Commodity and Currency at HDFC Securities, said, “Gold prices recovered yesterday from lower levels and closed higher by 0.37% at 60,066 levels. Silver closed higher by 2.31% and closed at 71,562 levels.”

CME Fed-Watch tool suggests that the market is pricing in a 100% chance that the US central bank will leave rates unchanged in December versus 86% before the inflation report. The dollar index fell 1%, hovering around the 104 mark, while the benchmark 10-year U.S.

Gupta said, “The dollar Index is trading at 10-week low levels after data for U.S. consumer prices showed signs that underlying inflation slowed in October, increasing the odds that the Federal Reserve is done hiking interest rates.”

Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “Gold prices inched higher as the Dollar and Treasury yields retreated after softer than expected U.S. consumer inflation data, which fuelled more bets that the Federal Reserve may be done hiking interest rates.”

Also read: I have no savings, but my bank offers me a pre-approved home loan of Rs 85 lakh. Can I buy a flat worth Rs 80 lakh?

Also read: My spouse and I earn Rs 2.72 lakh monthly and want to buy farmland. How can I plan my family's future?

Also read: My spouse and I earn Rs 60 lakh annually. How should I plan my retirement with a sum of 5 crore after 5 years?

US inflation fell more than expected to 3.2% in October, the first decline in four months, compared with a 3.7% rise in the 12 months to September; US Core CPI was also reported 0.1% lower than estimates.

“Treasury yields hit a more than one-month low after the data, supporting the safe-haven appeal for gold and silver prices. Market participants are still over the edge regarding the geopolitical tensions between Israel & Palestine, and its future ahead. Focus today will be on US PPI and Retail sales data from major economies,” said Modi.

Amit Khare, Associate Vice President at GCL Broking, said, “December Gold closed at 60066 (0.53%) and December Silver closed at 71590(2.22%). As per the daily chart Bullions are showing some profit booking, Momentum Indicator RSI also indicating the same, So traders are advised to book their longs and can make fresh short positions in Gold and Silver near given residence level one with the stop loss of resistance level two and book near given support levels: Gold December Support 59800/59600 and Resistance 60200/60500. Silver December Support 70600/70000 and Resistance 72000/72800.”