Gold and silver prices today: Yellow metal headed for biggest monthly fall since February

Gold opened on the Multi Commodity Exchange (MCX) on Friday at Rs 57,382 per 10 grams and hit an intraday low of Rs 57,290. In the international market, prices hovered around $1865.79 per troy ounce. Meanwhile, silver opened at Rs 71,149 per kg, hit an intraday low of Rs 71,149 on the MCX, and hovered around $22.82 per troy ounce in the international market.

Anuj Gupta, Head of Commodity and Currency at HDFC Securities, said that, as expected, gold prices corrected sharply by 0.94 per cent and closed at a six-month low of 57,128 on the back of strengthening in the dollar index. “FOMC keep interest steady, but they indicated to hike one more this year. For trading, gold may trade between $1855 to $1850 levels and on MCX, it may trade between 56800 to 57500 levels.”

Amit Khare, Associate Vice President at GCL Broking, said, “Bullion's daily charts are trading in oversold zone. We could see a good short-covering rally in bullions anytime."

Spot gold extended its losing streak to the fourth day in a row on the expectation that interest rates will stay higher for longer, which will hurt demand for non-yielding assets.

Praveen Singh, Associate V.P., Fundamental Currencies and Commodities, Sharekhan by BNP Paribas, said, “Gold is expected to remain weak on rate outlook.”

Also read: 'Bank has no liability...': How safe are cash, jewellery kept in a bank locker?

Also read: 'Delay in loan sanctions...': Indian banks go wary of student loans for Canada

Also read: Money insurance: Can you insure cash kept in a bank locker?

As mentioned, gold is braced for its biggest monthly fall since February and is hovering close to six-month lows on ahead of the widely watched US inflation data release due today.

Manav Modi, analyst of commodity and currency Motilal Oswal Financial Services, said, "The dollar retreated from a 10-month high, while Treasury yields were off a 16-year peak, but both were still headed for their best quarters in four."

US GDP growth was retained at 2.1 per cent in Q2 as the economy showed resilience. The US economy maintained a fairly solid pace of growth in Q2, and activity has accelerated this quarter. Still, a looming government shutdown and an ongoing strike by auto workers are dimming the outlook for the rest of 2023.

Modi said, “Pending US home sales dropped 7.1 per cent in August from the month prior as mortgage rates surging over 7 per cent in August to levels not seen in 20 years packed a punch. Federal official Barkin said it's unclear whether more monetary policy changes will be needed in the coming months. Focus today will be on U.S. Core PCE price index data."