Informist, Wednesday, Jan 10, 2024
By J Navya Sruthi
MUMBAI – GOLD prices climbed on the Multi Commodity Exchange today, tracking those on COMEX, ahead of the release of the US inflation data on Thursday.
This data is very crucial for the yellow metal as it could provide clarity to traders about the Federal Reserve’s stance on interest rate cuts, they added.
“We do not expect a huge change in inflation, but a good fall in household inflation in the upcoming headline inflation data would boost the yellow metal’s prices,” an analyst from Kotak Securities said.
Remarks from the Federal Reserve Vice Chair for Supervision, Michael Barr, suggested that the central bank is mulling significant changes to the current policy, Reuters reported on Tuesday.
Dovish remarks by Fed officials aid gold as interest rates and the precious metals are inversely related.
The overall trend for gold in January is positive, while the US inflation data is a crucial factor, Manoj Jain, director at Prithvi Finmart said. The analyst sees support for the precious metal at $2,000 an ounce for this month.
Further, Australia’s inflation slowed to a near-two-year low in November and core inflation also eased sharply, a softer-than-expected result that reinforced market expectations that interest rates would not need to rise any further, Kotak Securities said in a note.
In addition, geopolitical tensions in West Asia also support yellow metal prices on safe-haven demand, analysts said.
SILVER prices rose, taking cues from gold and industrial metals.
At 1640 IST, the following were the most active contracts of bullion:
-February gold was up 0.1% at 62,250 rupees per 10 gm on MCX
-February gold was up 0.4% at $2,040.6 an ounce on COMEX
-March silver was up 0.1% at 72,090 rupees per kg on MCX
–March silver was up 0.4% at $23.19 an ounce on COMEX
Outlook for the rest of the session:
-MCX gold seen at 62,030-62,405 rupees per 10 gm
-COMEX gold seen at $2,004.82-$2,059.18 an ounce
-MCX silver seen at 71,700-72,695 rupees per kg
-COMEX silver seen at $22.39-$23.57 an ounce
End
US$1 = 83.03 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Deepshikha Bhardwaj
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