Gold and silver prices today: Yellow metal languishes near three-week lows, silver slips by 3.27% MTD

Gold prices opened on the Multi Commodity Exchange (MCX) on Thursday at Rs 59,415 per 10 grams and hit an intraday low of Rs 59,373. In the international market, prices hovered around $1,937.25 per troy ounce. Meanwhile, silver opened at Rs 72,696 per kg and hit an intraday low of Rs 72,559 on the MCX. The price hovered around $23.68 per troy ounce in the international market.

Yesterday, gold prices closed with a 0.10% rise at 59450 levels. Anuj Gupta, Vice President of IIFL Securities, said, "Safe-haven demand is expected to increase after US economy's rating downgrade by Fitch. This uncertainty may be supportive of gold. Technically, the trend of gold is sideways to up. Strong support at 59200 and 59000 while resistance at 59700 and then 60000 levels."

"Today, one can buy on rise around 59200-59300 levels with a stop-loss of 59000 and for the target of 59700 to 59800 levels." According to Gupta, gold may test $1940 to $1945 levels in international markets.

Gold prices languished near three-week lows after better-than-expected private jobs data fuelled bets on tighter monetary policy and supported an up-move in dollar and bond yields.

Amit Khare, Associate Vice President at GCL Broking, said, "MCX Gold and Silver gave mixed closing yesterday, October Gold closed at 59471(0.12%), and September Silver closed at 72960(-1.35%), Bullion's daily charts are trading at demand zone, Good upside movement is possible soon,  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 59400/59150 and Resistance 59800/60000. Silver September Support 72700/72000 and Resistance 73700/74200."

Spot gold closed with a loss of 0.41% at $1936. The ten-year U.S. yields rocketed to a fresh cycle high of 4.129% before settling at 1.26%, up at 4.086%, though two-year yields fell by 0.42% to 4.885%. The U.S. Dollar Index closed 0.58% higher at 102.60.

Manav Modi, Analyst, Commodity and Currency, MOFSL, said, "The U.S. dollar index rose to a 4-week peak above 102 mark and benchmark 10-year Treasury yields were at their highest since November, breaching the level of 4%. U.S. private payrolls rose by 324,000 jobs last month, higher than the expectations of 189,000, signalling that the U.S. labour market still remains tight. The U.S. central bank raised interest rates by 25bps last week."

According to the CME's Fed-watch tool, the probability that the Fed would leave rates unchanged at its Sept. 19-20 meeting is more than 80%. However, positive economic data and Fed official's comments are increasing doubts regarding the probability of a pause in the rate hike cycle by the Fed.

"Focus today will be on Services PMI data from major economies and U.S. factory orders data. After positive private payroll data, all eyes are on the release of the US non-farm payrolls report for July, which, if reported better than expected, could continue adding dollar gains," said Modi.

China's Caixin services PMI data for July came in at 54.10 Vs. the forecast of 52.50. Praveen Singh – Associate V.P., Fundamental Currencies and Commodities, Sharekhan by BNP Paribas, said, “Today, apart from PMI services data out of the UK, Euro-zone, and the U.S., investors will pay attention to the Bank of England's monetary policy decision, too. The Central Bank is expected to hike rates by 25 bps. The commentary of Bank of England's Governor Bailey will be crucial for the Dollar Index."

Total known global gold ETF holdings fell for the seventh straight day. “A strong U.S. non-manufacturing ISM report may further pressurize the yellow metal as the outlook is weak," added Singh.