Gold and silver prices today: Yellow metal prices extend rally on softer US economic data, dollar nears four-month low

On Tuesday, gold prices on the Multi Commodity Exchange (MCX) opened at Rs 63,149 per 10 gram and fell to Rs 63,100. In the international market, the price was around $2,062.60 per troy ounce.

Meanwhile, silver opened at Rs 75,648 per kg, touched a low of Rs 75,550 on the MCX and settled at $24.39 per troy ounce in the international market.

Manav Modi, commodity and currency analyst at MOFSL, said, „Gold prices edged higher against the dollar to a four-month low after third-quarter US GDP and soft inflation data from the previous session.”

A revised reading of third-quarter gross domestic product showed the U.S. economy grew slightly less than initially expected. The reading still showed the U.S. economy growing much faster than its peers in developed countries, but a smaller-than-expected increase in weekly jobless claims boosted hopes for a cooling labor market.

US inflation was reported in line with expectations last week, keeping expectations for early rate cuts in 2024 high.

„Bet on an interest rate cut at the March'24 Fed policy meeting rose to 75%, weighing on the dollar index and U.S. yields, though many central bank officials cautioned that bets on an early Fed rate hike are too optimistic. The big economy is not. This holiday is abbreviated. Data points are expected during the week, which keeps volatility low,” Modi said.

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Amit Khare, associate vice-president, GCL Broking, said February gold ended at 62954 (0.72%) and March silver at 75386 (-0.04%). As per daily chart, bullion shows some profit booking. The momentum indicator RSI also indicates the same. Traders are advised to book new short positions in gold and silver with stop loss of both resistance levels near one given resistance level and near given support levels: Gold February support 62900/62600 and resistance 63100/63300. Silver March Support 75000/74700 and Resistance 75700/76300.”