Gold October futures prices exhibited stability near elevated levels, declining by Rs 155 or 0.14% in Thursday’s early trade at Rs 1,12,400 per 10 grams, as the market takes a momentary pause following a significant rally earlier in the week. Silver December futures prices commenced at Rs 1,34,355/kg, reflecting an increase of Rs 353 or 0.26%. In the international market, gold prices remained stable on Thursday as investors anticipated crucial U.S. economic data for additional insights into Federal Reserve policy, with a marginally weaker dollar providing some support to bullion. Spot gold remained unchanged at $3,734.04 per ounce, as of 0202.
U.S. gold futures for December delivery remained stable at $3,765.20. Mary Daly, President of the San Francisco Federal Reserve Bank, expressed her complete support on Wednesday for the Federal Reserve’s decision to lower its policy rate last week, anticipating additional reductions in the future. On Tuesday, Fed Chair Jerome Powell underscored the necessity of balancing inflation risks with a deteriorating jobs market in forthcoming policy decisions. Investors are anticipating the release of the personal consumption expenditures price index report on Friday, which serves as the Federal Reserve’s favored gauge of inflation, for additional insights regarding interest rate direction. On Wednesday, gold and silver concluded the trading session on a weaker note in both the domestic and international markets. The October futures contract for gold concluded at Rs 1,12,555 per 10 grams, reflecting a decline of 1.13%. Meanwhile, the December futures contract for silver settled at Rs 1,34,002 per kilogram, marking a decrease of 0.78%.
Gold and silver are experiencing profit-taking from their record-high levels, coinciding with a rebound in the dollar index following stronger-than-anticipated U.S. new home sales data. The dollar index surpassed the 97 mark, while the U.S. 10-year bond yield experienced a notable increase, leading to a reduction in safe-haven demand for precious metals. Gold prices have retreated from their record-high levels, while silver prices have also declined from their 14-1/2 year peaks. Today, the US Dollar Index was hovering near the 97.78 mark, gaining 0.10 or 0.10%. “The U.S. Fed Chairman’s concerns regarding inflation and the U.S. job markets, along with the absence of a commitment to aggressive rate cuts, contributed to profit booking,” stated Manoj Kumar Jain. Jain posits that ongoing geopolitical tensions, coupled with the purchasing activities of global central banks, may sustain support for gold and silver prices. Jain noted that gold prices surpassed $3,454, while silver prices exceeded $39.10 per troy ounce, indicating potential for further strength in the forthcoming sessions.
Gold and silver prices are anticipated to exhibit volatility this week, influenced by fluctuations in the dollar index and the broader global financial markets, as well as the forthcoming U.S. core PCE price index data. Gold is projected to trade within a range of $3,654-3,840 per troy ounce, while silver is expected to fluctuate between $42.40-45.50 per troy ounce during this period.