Gold, silver rates on April 18, 2024: Yellow metal prices dip by 1%, trading at Rs 72,498 per 10 grams

Gold prices opened on the MCX on Thursday at Rs 72,498 per 10 grams and hit an intraday low of Rs 72,461. In the international market, prices hovered around $2,377.98 per ounce.

Silver opened at Rs 84,000 per kg and hit an intraday low of Rs 83,358 on the MCX. In the international market, the price hovered around $28.41 per ounce.

Manav Modi, Analyst, Commodity and Currency, MOFSL, said, "Gold prices fell slightly as hawkish leaning comments from top Federal Reserve officials buoyed the dollar and Treasury yields, which weighed on bullion."

However, gold still remained in sight of recent peaks, as persistent concerns over a war between Iran and Israel kept safe-haven demand in play. Iran launched a strike against Israel in the previous weekend, with markets now watching for a response from Jerusalem, which some reports said was imminent.

Prices pulled off record highs this week as strong U.S. inflation and retail sales data saw investors scale back bets that the Fed will cut interest rates in June.

"Traders were now pricing in a nearly 80% chance the Fed will keep rates steady in June- a stark reversal from earlier bets for a 25 bps cut, according to the CME Fedwatch tool," said Modi.

IMF, in the recent World Economic Outlook report, raised global as well as US growth forecasts for this year but also raised concerns regarding inflation and an overall rise in deficits in the US. Focus today will be on Philly fed manufacturing index and comments from a few fed officials.

Kaynat Chainwala, Senior manager of Commodity Research at Kotak Securities, said, "COMEX Gold prices declined almost 1% on Wednesday, on signs that the Fed might delay the rate cuts amid a robust economy and rise in m/m inflation numbers inconsistent with the Fed’s 2% target."

Meanwhile, Federal Reserve Bank of Cleveland President Loretta Mester said monetary policy is in a good place, adding that the central bank shouldn’t be in a hurry to cut interest rates, following similar comments from other Fed officials earlier this week.

"Amid market expectations for rate cuts in September, rising yields, and better-than-expected US economic data, we might see the focus shift back to Fed policy. However, geopolitical risks remain, and any signs of escalation might further aid the prices," said Chainwala.