Gold futures for expiry in April increased by Rs 1,434 or 0.91%, reaching an intraday high of Rs 1,57,185 per 10 grams on the Multi-Commodity Exchange on Thursday, February 19. At approximately 1:13 pm, the safe-haven metal contract was priced at Rs 1,56,901 per 10 grams, indicating an increase of Rs 1,140 or 0.73%. In the global markets, however, gold for April delivery on COMEX experienced a decline of as much as 0.75%, reaching a session low of $4,971.50 per ounce. At the time of writing, it was trading 0.04% lower at $5,007.40 per ounce.
On the MCX, silver futures for March delivery experienced a notable increase, rising by Rs 3,881 or 1.59% to reach a peak of Rs 2,48,149 per kilogram during the day. The white metal contract was priced at Rs 2,47,559 per kilogram, reflecting an increase of Rs 3,291 or 1.35% at the time of this report. On the international stage, COMEX silver (March expiry) experienced an increase of 0.7%, reaching an intraday peak of $78.135 per troy ounce. The price stood at $78.135 per troy ounce, reflecting a 0.23% increase at the time of writing. Domestic precious metal prices experienced a notable increase, following the MCX’s decision to retract the additional margin of 3% imposed on gold futures (across all contracts of all variables) and 7% on all futures contracts, effective February 19.
In the meeting minutes of the Federal Open Market Committee from January, released on Wednesday, US federal officials demonstrated a consensus in maintaining the policy rates steady at 3.50%-3.75% during the previous month. However, they seemed to be at an impasse regarding their forthcoming actions, as the minutes indicated that “a two-way description of the path of policy could be supported,” suggesting the potential for both rate cuts and increases. Market participants are poised to closely monitor the upcoming release of the Personal Consumption Expenditures Price Index and core PCE data, scheduled for Friday. The Federal Reserve favors PCE as a more reliable indicator of inflation compared to the Consumer Price Index data. The latest report indicated that core CPI has increased at its slowest rate since March 2021.
On the geo-political front, media reports indicate that the United States has issued new threats against Iran, despite the conclusion of Iran-US nuclear talks in Geneva on Tuesday. Iran has stated that it reached an understanding with the US on the main “guiding principles” to resolve their disputes. Moreover, the US-facilitated discussions between Ukraine and Russia concluded on Wednesday without achieving a significant advancement.