Gold and silver prices today: Yellow metal trades at 59,222 and silver at 72,284

Gold prices opened on the Multi Commodity Exchange (MCX) on Wednesday at Rs 59,222 per 10 grams and hit an intraday low of Rs 59,181. In the international market, prices hovered around $1,931.85 per troy ounce. Meanwhile, silver opened at Rs 72,284 per kg and hit an intraday low of Rs 72,170 on the MCX. The price hovered around $23.20 per troy ounce in the international market.

Anuj Gupta, Head of Commodity and Currency at HDFC Securities, said that yesterday, gold prices closed on a flat to positive note, up by 0.04 per cent and closed at 59,283 as the market is awaiting a decision tonight. Expecting FOMC may keep interest rates study. We noticed that good numbers are adding in gold ETF in India, which is positive for gold. “Gold’s latest challenge came as the Dollar Index hit a one-week high to reclaim the 105 berths. In the international market, gold is trading at $1931 level. For trading, gold may trade between $1920 to $1940 levels and on MCX, it may trade between 58800 to 59300 levels. It may test $1940 to $1945 levels,” Gupta said.

Yesterday, spot gold closed with a minor loss of $1 at $1931.94 as the impact of weak US housing starts data was countered by firmer US yields. Ten-year US yields rose to near 2007 high level as five-year yields surged to the highest level since 2007. Two-year US yields at 4.092 per cent were up 0.72 per cent as ten-year US yields closed with a gain of 1.46 per cent at 4.36 per cent.

Praveen Singh, Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas, said, “A retreat in yields coupled with a dovish interpretation of the Fed's decisions and forecasts will be positive for gold.”

Gold prices fell after hitting a two-week high in the last session as traders await the U.S. Federal Reserve’s policy decision for an updated outlook on the economy and monetary tightening path.

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Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “The 10-year Treasury yield is hovering right at the August highs, and the dollar continues to trade above the 105 mark. Global markets are adjusting to a new outlook for rate hikes after the European Central Bank on Thursday raised rates to a record high of 4 per cent even as it signalled that hike to be its last.”

Market participants are not expecting a hike in interest rates this week, not after 11 hikes that added 5.25 percentage points to a base rate of just 0.25 per cent in February 2022. Recent comments from Fed policymakers suggested that inflation concerns still exist in the market, but they will also act as per the economic data points.

Modi said, “Treasury Secretary Janet Yellen said U.S. growth needed to slow to a pace more in line with its potential rate to bring inflation back to target levels since the economy was operating at full employment. U.S. building permits were reported higher, while the homebuilding plunged to a more than three-year low in August.”

Amit Khare, Associate Vice President at GCL Broking, said, “October Gold closed at 59282 (0.03 per cent) and December Silver closed at 72569(-0.01 per cent). Bullions daily charts are looking good and making a bottom, trading near the demand zone. Momentum Indicator RSI also indicates the same. So 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 October Support 59080/58900 and Resistance 59300/59500. Silver December Support 72000/71400 and Resistance 72700/73100.”