Gold, silver prices: Gold nears Rs 60,000; silver jumps 2.17% MTD

Gold prices on the Multi Commodity Exchange (MCX) opened on Friday at Rs 59,934 per 10 grams and hit an intraday low of Rs 59,870. In the international market, prices hovered around $1,964.44 per troy ounce.

Meanwhile, silver opened on Monday at Rs 73,860 per kg and hit an intraday low of Rs 73,800 on the MCX. In the international market, the price hovered around $24.31 per troy ounce.

Anuj Gupta, Vice President of IIFL Securities, said, “As expected yesterday gold prices increased from lower levels and closed 0.66 per cent higher at Rs 59,891 levels. In the international spot market it is trading at $1,965 per ounce. US jobless claim unexpected increased which put pressure on dollar index and safe haven demand seen in the gold.”

Gold prices are waiting the decision for US Federal Reserve on interest rates. However, the expectation of pause on rate hikes may provide support to gold prices. 

“For today, we are expecting a positive trend in gold prices. Strong support at Rs 59,600 levels and then Rs 59,300 levels, resistance at Rs 60,200 and then Rs 60,500 levels. One can buy around Rs 59,500–59,600 levels with the stop-loss of Rs 59,300 and for the target of Rs 60,200–60,300 levels. Gold may test $1,975–1980 levels soon,” added Gupta.

Gold and silver inched higher in the previous session, on track for their second weekly gain on bets that the U.S. Federal Reserve may pause rate hikes in its meeting next week. 

Manav Modi, Analyst, Commodity and Currencies, Motilal Oswal Financial Services Ltd. (MOFSL), said, “Lower than expected data points from the US supported the move in the dollar. US weekly jobless claims surged last week, cementing expectations that the Federal Reserve will pause its interest rate-hiking cycle. The dollar index also after holding gains above 104, witnessed a fall hovering close to the previous session’s lows and was on track for a second weekly fall. Meanwhile, the International Monetary Fund urged the U.S. Federal Reserve and other global central banks to “stay the course” on monetary policy and remain vigilant in combating inflation. Markets are pricing in more than 70% chance of the Fed standing pat next week, the CME FedWatch tool showed.”

Focus now shifts to the US consumer inflation report for May, due on June 13, ahead of the Fed meeting, which will provide investors with more clarity about the health of the world’s largest economy. Modi said, “Broader trend on COMEX could be in the range of $1945-1985 and on domestic front prices could hover in the range of Rs 59,500-60,200.”