Gold and silver prices today: Yellow metal holds steady despite firm dollar index

Gold opened on the Multi Commodity Exchange (MCX) on Friday at Rs 60,915 per 10 grams and hit an intraday low of Rs 60,903. In the international market, prices hovered around $1986.9 per troy ounce. Meanwhile, silver opened at Rs 71,745 per kg, hit an intraday low of Rs 71,708 on the MCX, and hovered around $22.87 per troy ounce in the international market. 

Anuj Gupta, Head of Commodity and Currency at HDFC Securities, said, “Gold prices increased by 0.04 per cent and closed at 60,826 levels. The dollar index is trading at 106.60 levels, which again works as a hurdle for gold. FOMC is expected to keep the interest rate stable in the upcoming meeting. For trading, gold may trade between $1980 to $1995 levels and on the MCX, it may trade between 60500 and 612000 levels. Silver may trade between 71200 and 72300 levels.” 

Gold prices are steady despite a firm dollar index and better-than-expected data points from the US amidst the Middle East conflict, which increased the safe-haven appeal for bullions. 

Praveen Singh, Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas, said, “Yesterday, gold managed to record a positive close despite robust US data. Spot gold closed with a gain of nearly $2 at $1985. Total known global gold ETF holdings rose for the first time in three days, though the overall holding level is still lower than the pre-war level.” 

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Market participants were cautious yesterday ahead of multiple economic data points scheduled from the US. Advance growth numbers showed the US economy progressed at its fastest pace in nearly two years in Q3, defying dire warnings of a recession. 

Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “Strong consumer spending was the main driver of a 4.9 per cent annualised increase in gross domestic product, a jump from 2.1 per cent in Q2. US durables goods orders data was also reported better than expectations supporting the dollar on the lower end. The number of people filing new claims for state unemployment benefits rose to a seasonally adjusted 210,000 during the week ending Oct. 21 from 200,000 in the prior week. Even though we witnessed strong numbers from the US, geopolitical tensions are supporting metals at the lower end. Also, market participants are awaiting US Inflation data scheduled data to clarify Fed’s interest rate path.”