Gold and silver prices today: Yellow metal rises as US dollar weakens

Gold opened on the Multi Commodity Exchange (MCX) on Tuesday at Rs 60,805 per 10 grams and hit an intraday low of Rs 60,805. In the international market, prices hovered around $1,991.43 per troy ounce.

Meanwhile, silver opened at Rs 72,644 per kg, hit an intraday low of Rs 72,644 on the MCX, and hovered around $23.78 per troy ounce in the international market.

Manav Modi, Analyst, Commodity and Currency, MOFSL, said, "Gold prices rose, supported by a weaker U.S. dollar as investors look forward to minutes from Federal Reserve's latest meeting for more guidance on its interest rate outlook."

The dollar languished to near a two-and-a-half month low as investors expect US interest rates to fall next year. Benchmark US 10-year yields were hovering near two-month lows it hit last week.

In his comments yesterday, Tom Barkin, president and CEO of the Federal Reserve Bank of Richmond, mentioned that recent progress in the US economy isn’t sufficient for the Federal Reserve to declare victory on inflation. Bets for a pause in the December Fed meeting is more than 95%, and currently, pricing is greater than 50% chance of a rate cut of at least 25bps by May.

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“Market participants are focused on the minutes of the Fed’s late-October meeting, where the bank kept rates steady and signalled that it will likely keep rates higher for longer. Focus today will be on the US existing home sales data,” said Modi.

Amit Khare, Associate Vice President at GCL Broking, said, “December gold closed slightly negative at 60705(0.01%), and December Silver closed negative at 72691(-0.61%).”

“As per the daily chart, bullions are looking strong now, and the momentum Indicator RSI also indicates the same. Traders are advised to make fresh buy positions in Gold and Silver near the given support level one with the stop loss of support level two and book near given resistance levels: Gold December Support 60600/60300 and Resistance 61000/61200. Silver December Support 72500/71800 and Resistance 73500/74000,” said Khare.