Gold and silver prices today: Yellow metal rises sharply by 0.46%, crosses Rs 60,000 threshold

Gold opened on the Multi Commodity Exchange (MCX) on Friday at Rs 60,401 per 10 grams and hit an intraday low of Rs 60,313. In the international market, prices hovered around $1,976.40 per troy ounce. Meanwhile, silver opened at Rs 71,995 per kg, hit an intraday low of Rs 71,721 on the MCX, and hovered around $22.91 per troy ounce in the international market. 

Anuj Gupta, Head of Commodity and Currency at HDFC Securities, said, “Gold prices increased sharply by 0.46 per cent and closed at 60339 levels. Yesterday, it tested a four-month high of 60375. Due to tension [in the Middle East], safe-haven demand is being seen for bullion.” 

Gupta further said, “The dollar index is trading at 106.05 levels, which is again working as a hurdle for gold.” He added that the technical trends indicated an up move for gold, and the war may provide further support. 

The US FOMC is expected to keep the interest rates stable at its upcoming meeting. Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “Gold gained for a third consecutive session yesterday as growing tensions in the Middle East sparked safe-haven demand, while remarks from Federal Reserve Chair Jerome Powell fuelled hopes the U.S. central bank may pause rate hikes.” 

There is a risk that the war in the Middle East could involve more entities, impacting more of the world economy, and that is driving more investors towards safe-haven assets. 

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In his comments yesterday, US Federal Reserve Governor Jerome Powell walked a narrow line, leaving open the possible need for more rate hikes because the economy had proved stronger than expected, noting emerging risks and a need to move with care. 

Powell said the Fed will continue to work towards bringing inflation to its target of 2 per cent. However, the economy is very resilient, and it will need to see the impact of previous rate hikes before making any further decisions. 

“US 10-year yields rose towards the psychological level of 5 per cent during Powell’s speech, and the dollar index is also holding firm above the 106 mark. Bets for a pause in the November meeting have moved up to 97 per cent, and the same for the December meeting is at ~70 per cent. Focus today will be UK retail sales and comments from a few fed officials,” said Modi. 

Amit Khare, Associate Vice President at GCL Broking, said, “December gold closed at 60350 (0.46 per cent) and December Silver closed at 71685 (-0.29 per cent). Per the daily chart, bullions are looking positive. We can see some upside in the near future. 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 the given resistance levels: Gold December Support 60100/59800 and Resistance 60500/60700. Silver December Support 71600/70600 and Resistance 72600/73000.”