Gold, silver price on April 23: Major correction seen, yellow metal hovers near Rs 71,000, silver dips 3.5%

Gold, silver price on April 23: Major correction seen, yellow metal hovers near Rs 71,000, silver dips 3.5%

Gold prices were hovering on the MCX at Rs 71,125 per 10 grams, hitting an intraday low of Rs 70,202. In the international market, the prices hovered around $2,295.74 per ounce.

Silver was at Rs 80,171 per kg and hit an intraday low of Rs 79,361 on the MCX. In the international market, the price hovered around $26.93 per ounce.

Anuj Gupta, Chief of Commodity and Currency at HDFC Securities, said, “Yesterday, we saw the biggest correction in gold in the last two years. It corrected by 2.21% and closed at 71,197 levels. The earlier correction in gold prices was 2.73% on 9th March 2022.”

Silver  corrected by 3.51% and closed at 80,579 levels. “We observed profit booking as the expectation of a cut in interest rates faded out. The Fed reserve may extend the cut until the end of the year. The dollar index is trading at six-month high levels,” said Gupta.

Analysts are expecting some more profit booking, which may be seen in yellow gold.

Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “Gold prices languish, as waning concerns over a bigger war in the Middle East sapped safe-haven demand for the metal, while bets on higher-for-longer U.S. interest rates also pressured prices.”

The dollar steadied near five-month highs, while US Treasury yields advanced as traders remained on edge over higher-for-longer interest rates. Strong inflation readings for March and hawkish signals from Federal Reserve officials influenced the market to price out expectations for a June rate cut by the Fed.

“Any update on the increase in distress or Fed’s monetary policy path ahead could provide clarity in Gold. Today’s focus will be on housing numbers from the US and preliminary manufacturing and services PMI data from major economies,” said Modi.

Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said, “Price went on to be weak as profit booking continued in gold, for the week ahead price correction can continue as long as there is no new fresh trigger in the middle east. Rs 72500 will act as major hurdle for Gold in MCX.”

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