Gold and silver prices today: Yellow metal holds steady as investors focus on US Fed policy meeting

Gold prices opened on the Multi Commodity Exchange (MCX) on Monday at Rs 62,263 per 10 grams and hit an intraday low of Rs 62255. In the international market, prices hovered around $2,025.38 per troy ounce. 

Meanwhile, silver opened at Rs 71,854 per kg and hit an intraday low of Rs 71,853 on the MCX. The price hovered around $22.95 per troy ounce in the international market. 

Anuj Gupta, Chief of Commodity and Currency at HDFC Securities, said, “Gold prices are expected to trade in the $1980-2040 range with a moderate bearish bias. The upside looks limited at $2035 and $2040 levels. MCX Gold April Future has support at 61950/61600 and resistance at 62320/62600.” 

“The silver short-term trend remains bearish until the price trades below the $23.50 level, and we expect the price to correct to the $21.50 level in the short term. The MCX Silver May future has support at 72400/71700 and resistance at 73780 and 74500,” added Gupta. 

Additionally, Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “Gold prices traded steady in the previous session as investors’ attention shifted to the US Federal Reserve’s policy meeting due this week for more insights into the interest rate outlook. US prices rose moderately in December, keeping the annual increase in inflation below 3% for a third straight month, which could allow the Fed to start cutting interest rates this year.” 

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However, another set of data last week showed the US economy grew faster than projected in the fourth quarter, giving more possible room to the Fed for tighter monetary policy conditions. The US economy grew at a 3.3% annualised rate during the final quarter of last year, capping off a strong 2023 that defied recession fears. ECB, too, held rates unchanged at 4%; ECB Governor Christine Lagarde said rapid wage growth was already showing signs of slowing in the eurozone, striking a dovish note on the potential for interest rate cuts. 

“Markets widely expect the Fed to leave interest rates unchanged at its policy meeting on Jan. 30-31, but have pared back expectations of a rate cut by March. Focus today will be on EU GDP and US Consumer confidence data," said Modi.