Gold Prices at a Two-Week Low Amidst Signs of a Pause in Gaza

SEATTLE (Scrap Monster): Gold opened on the Multi Commodity Exchange (MCX) on Wednesday at Rs 60,396 per 10 grams and hit an intraday low of Rs 60,320. In the international market, prices hovered around $1,966 per troy ounce. Meanwhile, silver opened at Rs 70,893 per kg, hit an intraday low of Rs 70,388 on the MCX, and hovered around $22.49 per troy ounce in the international market. 

Anuj Gupta, Head of Commodity and Currency at HDFC Securities, said, “Gold prices yesterday corrected sharply by 0.70% and closed at two week’s low level at 60347 levels. We noticed profit booking in the gold and silver prices as traders booked profit on higher levels before Diwali. Silver was corrected by 2.22% and closed at 70634 levels. The Dollar Index is trading below 106 levels, and bond yields are also cooling off, which is positive for gold in the long run. For trading, gold may trade between $1960 to $1975 levels, and on the MCX, it may trade between 60000 to 60500 levels. Silver may trade between 59500 to 61000 levels.” 

US Federal Reserve official Lorie Logan said yesterday that the labour market is still tight and the economy has been surprisingly resilient; some ease off in inflation and economic data is required before further action in interest rates. 

Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “Gold hit a two-week low amidst signs of an ease off in Middle East tensions, with the market focus turning to interest rate cues from Federal Reserve officials. The Dollar Index gained momentum after hitting a six-week low earlier, weighing on bullions, while US 10-year yields continue to hover near their five-week low at the 4.57% mark.” 

US Fed Bank of Minneapolis President Neel Kashkari said the central bank likely has more work ahead of it to control inflation. The steam in geopolitical tensions is also easing off a bit, with no major countries getting involved to avoid further escalation regarding the Israel-Palestine dispute weighing on metal prices. 

Investors now await a host of speeches from other Fed officials as well this week, with the spotlight on US Fed Chair Jerome Powell, who is due to speak today and tomorrow. 

Courtesy: www.businesstoday.in