After a hawkish guidance for a 2025 rate cut by the US Fed, Gold February futures contracts at MCX opened lower by nearly 1% on Thursday at Rs 75,941 per 10 gram, which is down by Rs 712 while silver March futures contracts were trading at Rs 88,261/kg, down by 2.3% or Rs 2,119.
On Wednesday, gold and silver settled on a weaker note in the domestic and international markets. Gold February futures contract settled at Rs 76,653 per 10 grams with a loss of 0.28% and silver March futures contract settled at Rs 90,380 per kilogram with a loss of 0.54%.
Gold and silver extended its fall on Wednesday. The US Fed cuts interest rates by 25 basis points as per expectations but gives hawkish guidance for 2025 rate cuts. The US Fed said in a statement that recent indicators suggest that economic activity continues to expand at a solid pace. The job market has improved; the unemployment rate has moved up but remains low.
Inflation has made progress towards the FED’s target rate of 2.0% but remains somewhat elevated. The US FED cuts 2025 rate cut chances of earlier 100 basis points to 50 basis points and could push precious metals lower.
“We expect gold and silver prices to remain under pressure after FED hawkish guidance and now $2,588 and $29.88 per troy ounce is make or break levels for gold and silver. If prices are unable to hold these key support levels on a weekly closing basis the short term trend would be negative for both metals,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.
However, the long term trend of gold and silver remains positive, Jain added.The dollar index hit 2-year highs after FOMC meeting outcomes. Today, the US Dollar Index, DXY, was hovering near the 108.09 mark, gaining 0.06 or 0.05%.
Ranges for gold and silver by Manoj Kumar Jain:
- At MCX, gold has support at Rs 76,000-75,350 and resistance at Rs 77,000-77,500.
- Silver has support at Rs 88,800-87,000 and resistance at Rs 91,200-92,000.
Jain states that he expects a gap down opening in gold and silver in today’s session and for prices to recover gradually from lower levels. Hence, for long term investors, it can be seen as an opportunity to add at lower levels but could wait for stabilizing the markets.
Gold rates in physical markets
Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 58,128/8 grams while pure gold (24 carat) prices stand at Rs 62,024/8 grams.
Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 57,120/8 grams while pure gold (24 carat) prices stand at Rs 60,928/8 grams.
Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 56,736/8 grams while pure gold (24 carat) prices stand at Rs 60,448/8 grams.
Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 57,272/8 grams while pure gold (24 carat) prices stand at Rs 61,000/8 grams.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)