Gold and silver prices today: Yellow metal prices remain stable above $2000 mark, trading within a range

Gold prices opened on the Multi Commodity Exchange (MCX) on Tuesday at Rs 62,007 per 10 grams and hit an intraday low of Rs 61,934. In the international market, prices hovered around $2,019.59 per troy ounce.

Meanwhile, silver opened at Rs 72,666 per kg and hit an intraday low of Rs 72,608 on the MCX. The price hovered around $22.97 per troy ounce in the international market.

Silver prices steadied in early Asian trading after China slashed its five-year loan prime rate, the reference for mortgages, by 25 bps to 3.95% at the February fixing, more than market forecasts of a reduction of 15bps, per Kotak Securities research report.

Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “Gold price continues to trade in a range hovering above the $2,000 mark on the mixed economic data from the US and change in interest expectations. In the previous week, gold briefly broke below the psychological level of $2,000 on the back of positive US inflation data, which led the market participants to price out of an early rate cut this year; however, lower-than-expected Retail sales led to some recovery in prices.”

Strength in the dollar weighed on gold, as the greenback remained in sight of a three-month high after stronger-than-expected producer price index inflation.

Fed officials also took the stage last week and continued to reiterate that until inflation is not around their target of 2%, the Fed will not look to ease the monetary policy. Focus is now on the minutes of the Fed’s end-January meeting for more cues on interest rates. The Fed had largely downplayed all bets on early rate cuts during the meeting.

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Meanwhile, investment activity remains subdued with persistent ETF outflows. Holdings at the SPDR Gold ETF declined from 841.92 tonnes on 9th Feb to 837.31 tonnes as on February 6 to the lowest since August 2019. At the same time, heightened geopolitical tensions are providing some cushion. Now, the focus will be on US FOMC meeting minutes, which is expected to show broad consensus for rate cuts this year, though uncertainty looms regarding the timing, per Kotak Securities research report.

Deveya Gaglani, Research Analyst - Commodities, Axis Securities, said, "Gold prices closed on a flat note in the last session. Yesterday, the US market was closed, so there was not much traction in the commodity market. Traders will focus on the US minutes meeting this week to take cues regarding the rate hike trajectory. Gold prices were slightly down in the morning session, pressured by the rising dollar index and elevated treasury yields. On the domestic market, prices are trading near the strong resistance zone of 62000 level. Breakout above the mentioned level may push prices higher towards 62500, or it will trade between 61600 and 62000 levels."