Gold and silver prices today: Yellow metal hovers near one-month peak

Gold prices opened on the Multi Commodity Exchange (MCX) on Friday at Rs 59,296 per 10 grams and hit an intraday low of Rs 59,277. In the international market, prices hovered around $1,938.76 per troy ounce. Meanwhile, silver opened at Rs 74,203 per kg and hit an intraday low of Rs 74,171 on the MCX. The price hovered around $24.43 per troy ounce in the international market.

Yesterday, spot gold fell 0.11 per cent to $1940 as the US Dollar Index rebounded on somewhat disappointing data out of the Euro-zone, stoking stagflation fears. The Dollar Index closed with a gain of 0.49 per cent at 103.63. Two-year US yields were softer by 2 bps, whereas tens closed nearly steady.

Praveen Singh, Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas, said, “Germany’s job report was somewhat disappointing as unemployment change (August) at 18,000K was above the estimation of 10,000K, though the nation's unemployment rate was steady at 5.70 per cent. Euro-zone’s CPI inflation data (August) were broadly hotter than expected, though core CPI inflation data edged lower from 5.50 per cent to 5.30 per cent on a y-o-y basis. The euro-zone unemployment rate remained unchanged at 6.40 per cent.”

“The US data were somewhat positive for the US Dollar Index. Initial jobless claims (August 19) fell to 228K from 230K, thus were lower than the forecast of 235K,” added Singh.

Total known global gold ETF holdings recorded an inflow for the first time in four days on August 30. China's Caixin manufacturing PMI data (August) released this morning showed an unexpected expansion, which is somewhat positive for commodities in general.

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Gold steadied, hovering near its one-month peak, as a fall in Dollar index and US Yields was slightly offset by unchanged inflation and lower jobless claims data.  U.S. inflation, measured by the personal consumption expenditures (PCE) price index, was unchanged at 0.2%.

Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “On an annual basis, the PCE price index increased 3.3 per cent, after advancing 3.0 per cent in June. US weekly initial jobless claims fell 4,000 to 228,000; that compares with a four-week average of 237,500. U.S. consumer spending, which accounts for more than two-thirds of the country’s economic activity, also accelerated in July, showing economy resilience.”

Amidst the data points reported this week, the Dollar index and US Yields witnessed an ease and are trading steadily above the 103.50 and 4 per cent mark, respectively.

“Focus now shifts to manufacturing PMI data from major economies and to the all-important US unemployment rate and non-farm payrolls data scheduled later in the evening, which could trigger further volatility in bullions,” said Modi.

Bets on the Fed leaving rates unchanged in September stood at 88%, while bets of a pause in November were at 50%, according to the CME Group’s FedWatch tool.

Amit Khare, Associate Vice President at GCL Broking, said, "October Gold closed at 59374(-0.18%) and December Silver closed at 75682(-0.78%). Bullions daily charts are showing some profit booking. Momentum Indicator RSI also indicating the same. So, traders are advised to book their long positions and can make fresh short positions in Gold and Silver near given resistance level one with the stop loss of resistance level two and book near given support levels: Gold October Support 59300/59150 and Resistance 59500/59700. Silver December Support 75000/74500 and Resistance 76000/76700."