Gold and silver prices today: Yellow metal prices advance

Gold prices opened on the Multi Commodity Exchange (MCX) on Tuesday at Rs 62,461 per 10 grams and hit an intraday low of Rs 62,443. In the international market, prices hovered around $2,048.06 per troy ounce. Meanwhile, silver opened at Rs 72,560 per kg and hit an intraday low of Rs 72,371 on the MCX. The price hovered around $23.15 per troy ounce in the international market. 

Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “Gold prices advanced in the previous session, as the metal’s appeal was boosted by safe-haven demand owing to tensions in the Middle East, while markets raised bets that the Federal Reserve could cut rates as soon as March.” 

Volatility in the previous session was lower on the back of the Martin Luther King Day holiday. The war between Israel and Hamas has passed the 100-day mark as Israel continues its fierce offensive, while the Houthi militia’s threat to respond to US air strikes on Yemen kept risks elevated. 

Mixed US inflation readings also saw traders largely maintain their bets that the Fed could begin cutting interest rates as soon as March 2024, which kept the dollar subdued. 

Also read: Mutual funds: How Rs 10,000 a month in SIP turned to Rs 2 crore

Also read: Check SBI’s latest fixed deposit plan with interest rates and other details here

Also read: DBS Bank India and CRISIL study reveals 50% of salaried women have never taken a loan

However, US 10-year yields have been increasing, trading around the 4% mark and capping some gains for metal prices. “Traders are now pricing in more than 70% chance that the Fed could cut rates in March, according to CME’s FedWatch tool. This week will be important as along with US retail sales, IIP data, the focus will also be on GDP numbers from China,” said Modi. 

Amit Khare, Associate Vice President at GCL Broking, said, “MCX Gold and Silver gave positive closings yesterday; February Gold closed at 62559 (0.32%), and March Silver closed at 72627 (0.20%). As per the daily chart, Bullions are trading near the demand zone. We can see a good recovery from the support zone. Momentum Indicator RSI also indicates 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 February Support 62300/62000 and Resistance 62600/62800. Silver March Support 72200/71200 and Resistance 73500/74000.”