Gold and silver prices today: Yellow metal prices extend rally on softened US economic data, dollar nears four-month low

Gold opened on the Multi Commodity Exchange (MCX) on Tuesday at Rs 63,149 per 10 grams and hit an intraday low of Rs 63,100. In the international market, prices hovered around $2,062.60 per troy ounce.

Meanwhile, silver opened at Rs 75,648 per kg, hit an intraday low of Rs 75,550 on the MCX, and hovered around $24.39 per troy ounce in the international market.

Manav Modi, Analyst, Commodity and Currency, MOFSL, said, "Gold price rose, extending gains from the prior session after a mild downgrade to third-quarter US GDP and soft inflation data, which put the dollar near four-month lows."

A revised reading on third-quarter GDP showed the US economy grew slightly less than initially expected. The reading still showed the US economy growing far more than its peers in the developed world, but a smaller-than-expected rise in weekly jobless claims ramped up hopes for a cooling labour market. 

US inflation last week was reported in line with expectations, keeping expectations high for early rate cuts in 2024.

"Bets for a rate cut in the March'24 Fed policy meeting have risen to 75%, weighing on the Dollar Index and US Yields, although several Fed officials warned that bets on early monetary easing by the Fed were overly optimistic. No major economic data points are expected in this holiday-shortened week, keeping the volatility low," said Modi.

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Amit Khare, Associate Vice President at GCL Broking, said February Gold closed at 62954(0.72%), and March Silver closed at 75386(-0.04%). As per the daily chart, bullions are showing some profit booking. Momentum Indicator RSI also indicates the same. Traders are advised to book their longs and can make fresh short positions in gold and silver near the given resistance level one with the stop loss of resistance level two and book near given support levels: Gold February Support 62900/62600 and Resistance 63100/63300. Silver March Support 75000/74700 and Resistance 75700/76300."