Gold and silver prices today: Yellow metal inches higher for the third straight day

Gold and silver prices today: Yellow metal inches higher for the third straight day

Gold prices opened on the Multi Commodity Exchange (MCX) on Wednesday at Rs 62,211 per 10 grams and hit an intraday low of Rs 62,195. In the international market, prices hovered around $2,021.99 per troy ounce.

Meanwhile, silver opened at Rs 71,381 per kg and hit an intraday low of Rs 71,334 on the MCX. The price hovered around $23.14 per troy ounce in the international market.

Anuj Gupta, Chief of Commodity and Currency at HDFC Securities, said, “Yesterday gold prices increased sharply by 0.26% and closed at 62167 levels. Silver prices closed on a flat note at 71255 levels.”

Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “Gold prices tread water amid persistent concerns over higher-for-longer interest rates, while a U.S. market holiday also made for scant immediate trading cues.”

While increased geopolitical tensions in the Middle East and between Russia and Ukraine offered gold some support in recent sessions, gains for the metal have been largely held back by the prospect of higher for longer US interest rates.

“Traders began steadily pricing out chances of early interest rate cuts by the Fed after a series of hotter-than-expected US inflation readings for January, while several Fed officials also warned against bets on early rate cuts,” said Modi.

The dollar index slipped in yesterday’s session against its major crosses; however, it is still trading around the 104 mark. The US 10-year yield was firm, trading close to the previous week’s high close to the 4.3% mark.

COMEX Gold prices inched higher for the third straight day, amid heightened geopolitical tensions, ease in the greenback and China growth concerns. Robust demand from central banks also aids the physical gold demand, countering ETF outflows, per the Kotak Securities research report.

COMEX Silver prices closed marginally lower on Tuesday, tracking mixed sentiments in industrial metals and an uptick in bullions. The People’s Bank of China slashed its five-year loan prime rate by 25 basis points to 3.95%, more than forecasts for a 15 bps cut. It was the most aggressive cut since that rate was introduced in 2019 as China continues to grapple with a sluggish economic recovery. Data showed that Chinese holiday spending rose to pre-pandemic levels; however, investors are spending cautiously amid looming economic uncertainty. The property sector drags on the Chinese economy and is limiting gains in Silver prices despite recent support measures from Beijing, per the Kotak Securities research report.

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