Gold and silver prices today: Yellow metal holds steady amid dollar’s slide

Gold prices opened on the Multi Commodity Exchange (MCX) on Tuesday at Rs 58,995 per 10 grams and hit an intraday low of Rs 58,880. In the international market, prices hovered around $1,922.87 per troy ounce. Meanwhile, silver opened at Rs 72,185 per kg and hit an intraday low of Rs 72,030 on the MCX. The price hovered around $23.08 per troy ounce in the international market.

Anuj Gupta, Head of Commodity and Currency at HDFC Securities, said, “Yesterday, Gold prices closed flat to up 0.05 per cent and closed at 58930 due to no fresh trigger in the market, however market is waiting for US Economic data & FOMC decision on interest rates. We also noticed some profit booking in dollar index from higher levels. For trading, gold may trade between $1910 to $1930 levels and on MCX it may trade between 58500 to 59300 levels with mixed Trend broadly.”

Gold price trade steady after inching higher at the start of this week on the back of a fall in dollar index and as investors awaited the release of U.S. inflation figures that could provide an updated view on interest rates after a widely expected pause by the Federal Reserve next week.

Amit Khare, Associate Vice President at GCL Broking, said, “October Gold closed at 58930 (0.07 per cent) and December Silver closed at 71942 (0.53 per cent), Bullions daily charts are making bottom and trading near demand zone, Momentum Indicator RSI also indicating 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 58850/58600 and Resistance 59100/59300. Silver December Support 71500/70700 and Resistance 72300/73000.”

US yields were slightly firmer as two-year yields were up by 1 bps, whereas ten-year yields rose 3 bps. Dollar Index fell 0.54 per cent to close at 104.52.

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Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “The US dollar index steadied after posting its biggest intraday loss in two weeks in the previous session, US 10Y yields holds firm around its previous week high of 4.3 per cent, capping gains for bullions. Fed officials were quite active in the previous week preparing the market for fed meeting scheduled next week. Fed policymakers raised concerns regarding inflation and their intent to bring the same down to their target of 2 per cent. However, some were also in favour of keeping the rates steady at current levels. CME Fed-Watch tool suggests that the probability for a pause in the Sept. fed meeting is at 93%, supporting an up-move in gold and silver prices. Better than expected data from China over the weekend also supported the sentiment for industrial metals including silver. Along with inflation data from US and India, focus this week is also on the ECB interest rate decision.”

A higher-than-expected monthly reading may encourage hawkish Fed bets and further weigh down on gold. In contrast, a lower-than-expected reading may have the opposite effect and aid in the recovery in gold prices.

Prithviraj Kothari, MD CEO of RiddiSiddhi Bullions Limited (RSBL), said, “The next targets for the bears could be Rs 58300 and Rs 58000 if the price of gold falls below Rs 58800 and begins to encounter that level as resistance. Before the Rs 59600 barrier, Rs 59200 is aligned as immediate resistance on the upside. A daily close above that level might attract more buyers to help Gold reach its next target of Rs 60000.”

A weaker Dollar and positive undertones in the commodities complex helped gold post a gain of 0.20% as it closed at $1922.80.  

Praveen Singh, Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas, said, “Gold benefited on positive undertones in commodities as commodities were generally higher on weaker Dollar, China’s economy was able to avert deflation risk for now at least; encouraging China’s new Yuan loans data that was recorded at 1360 billion Yuan in August, thus topping the forecast of 1250 billion Yuan, cemented positive connotations in commodities.”

The European Commission has cut down the economic growth forecast of the Euro-zone in 2023 by 0.30% to 0.80% as Germany's economy continues to be a drag on the bloc's growth. The Commission pared down the growth forecast for the next year by the same amount. Today's Euro-zone's data docket includes Germany's WPI inflation (August) and ZEW Survey expectations (September). UK's monthly job report (July) will also be in focus today," said Singh.