"Yesterday, gold prices increased by 0.19% and closed at 63,320 levels," said Anuj Gupta, Head of Commodity and Currency at HDFC Securities. Silver prices fell by 0.05% and closed at 74390."
"Gold prices edged higher, supported by the prospect of interest rate cuts by the US Federal Reserve in 2024," said Manav Modi, Analyst, Commodity and Currency, MOFSL. Investors are anticipating a flood of economic data points this week to provide more clarity on the US rate outlook."
The economic indicators from the United States this week were lower than predicted, supporting an increase in bullions. The Chicago PMI and existing house sales in the United States were reported lower than expected the previous week, indicating some weakening in the housing industry and overall economy.
However, after languishing around five-month lows, the dollar index has reversed course and is now trading around 101.60; similarly, US 10-year rates are higher, trading around 3.9%.
Modi added, "Bets for interest rate cuts from the US Fed have firmed following cooler inflation data, with traders now pricing in a 75% chance of monetary policy easing in March, according to the CME Fed-Watch tool."
"Market participants will be watching manufacturing PMI from major economies today." "The focus this week will be on minutes from the last Fed meeting and US data on the US labour market," Modi added.
"February gold closed at 63,320 (0.19%), and March silver closed at 74,390 (-0.02%)," said Amit Khare, Associate Vice President at GCL Broking. Bullions appear to be in good shape on the daily chart. Traders are encouraged to open new buy positions in gold and silver near the aforementioned support levels one and two, with a stop loss at the given resistance levels: Gold February Support 63200/62900 and Resistance 63600/64000. Support for silver in March is 74100/73600, and resistance is 75000/75500."
