Gold and silver prices today: Yellow metal edges lower as dollar firms up

Gold prices opened on the Multi Commodity Exchange (MCX) on Tuesday at Rs 59,863 per 10 grams and hit an intraday low of Rs 59,837. In the international market, prices hovered around $1,968.34 per troy ounce. Meanwhile, silver opened at Rs 75,330 per kg and hit an intraday low of Rs 75,002 on the MCX. The price hovered around $24.77 per troy ounce in the international market.

Spot gold closed with a gain of 0.37% at $1965.32 on Monday. U.S. two-year and 10-year bond yields were almost unchanged, while the U.S. Dollar Index was up by 0.24% as it closed at 101.86.

Praveen Singh – Associate V.P., Fundamental Currencies and Commodities, Sharekhan by BNP Paribas, said, "Gold gains came on healthy risk appetite and outside bullish markets as industrial commodities surged. Risk appetite improved as China took further steps to stimulate its economic growth. The nation's State Council urged cities to start introducing policies to ensure the development of their property markets. In addition, China will optimise property policies and step up research and construction of a new development model for the property markets."

China's National Development and Reform Commission released a policy document focusing on improving consumption. The document lists arrays of policies that aim to remove the government's consumption restrictions, including car purchases, and promote infrastructure and food festivals. Wider markets were upbeat on China's fresh initiatives.

Elsewhere, the Euro-zone economy returned to growth as Q2 GDP at 0.30% q-o-q growth beat the forecast of 0.20% growth. The Euro-zone economy registered a growth of 0.60% in Q2 on a y-o-y basis as against the forecast of 0.50%. In the fourth quarter of 2022, the economy contracted by 0.10% on a q-o-q basis, while in the first quarter of 2023, the q-o-q growth stagnated. Euro-zone's core CPI y-o-y (July preliminary) was noted at 5.50% Vs the forecast of 5.40%, which matched the June, whereas the headline inflation edged lower to 5.30% in July from 5.50% in June, though the data was in line with the forecast of 5.30%.

"Gold is expected to be range-bound, though intrinsic fundamentals are not so supportive. Total known ETF gold holdings have fallen for nine straight weeks. This week's U.S. data, especially ISM non-manufacturing and monthly job data, will be crucial for the yellow metal," said Singh

Anuj Gupta, Vice President of IIFL Securities, said, "As expected, we saw that gold prices closed positively, up by 0.55% to 60096. Expectations of demand and lower-level buying are seen l. Although higher crude oil prices were also supportive of bullion."

Gupta said, "Technically, the trend of gold is sideways to up. Strong support at 59800 and 59500 while resistance at 60400 and 60700 levels. Today, one can buy on the rise around 59800-59900 levels with a stop-loss of 59500 and for the target of 60400 to 60600 levels. Gold may test $1970 to $1975 levels in international markets."

Besides, gold prices edged lower as the U.S. dollar firmed, while investors looked forward to key economic data this week for signs of how long the interest rates could keep rising to quell sticky inflation.

Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “Gold in July posted gains of more than 2%, biggest monthly rise in four months on rising expectations of a pause in a rate hike cycle by the major central banks globally. Fed official Goolsbee said the U.S. central bank is walking the line pretty well on bringing inflation down without causing a recession and will watch the data as September approaches to judge if more monetary tightening may be appropriate. A recovery in the dollar spurred some losses in gold as data showed that U.S. credit conditions were tightening amid high-interest rates. Market this week will be keeping an eye on the PMI data from major economies and U.S. jobs market data, which could provide further clarity regarding the strength in the economy."

Amit Khare, Associate Vice President at GCL Broking, said, "MCX Gold and Silver gave positive closing yesterday, October Gold closed at 60082(0.50%), and September Silver closed at 75427(1.84%), Bullions daily charts are looking attractive, good upside movement is possible in the near future,  Momentum Indicator RSI also indicating the same."