Gold began at Rs 63,258 per 10 grams on the Multi Commodity Exchange (MCX) on Wednesday and reached an intraday low of Rs 63,257. Prices on the international market were around $2,063.70 per troy ounce.
Meanwhile, silver opened at Rs 73,971 per kg, fell to an intraday low of Rs 73,968 on the MCX, and traded in the international market at roughly $23.69 per troy ounce.
"Gold started the new year on a steady note," said Manav Modi, Analyst, Commodity and Currency, MOFSL, "as on the one hand the dollar index and US yields inched higher while on the other rate cut expectations by the Fed held ground on the lower end."
The dollar index surged 0.8%, correcting recent lows and on course for its greatest daily gain since July; US 10-year rates rose slightly, staying around 3.9%. The likelihood of an escalation in Red Sea tensions, as well as updates on other geopolitical crises, maintained gold prices at lower levels.
According to the CME's FedWatch Tool, traders are pricing in a more than 70% possibility that the Fed will decrease rates by 25 basis points in March. However, there is one more meeting until the March reading, and the central bank must still grapple with a barrage of economic data, particularly on inflation and the labour market, in order to assess the overall health of the economy.
In December, Fed officials warned that the central bank would need to see more cooling in the two trends before considering cutting interest rates early. Fed officials also warned that bets on the Fed cutting interest rates soon were excessively optimistic.
"This week, market attention is on the minutes of the last Fed meeting, which are scheduled for tomorrow," Modi remarked. Data on job vacancies in the United States and non-farm payrolls in December, both due on Friday, will also be eagerly watched."
According to Amit Khare, Associate Vice President of GCL Broking, "MCX gold and silver gave negative closings yesterday; February Gold closed at 63257(-0.10%), and March Silver closed at 74095(-0.40%)."
"Traders are advised to open new buy positions in gold and silver near the given support levels one and two, with a stop loss at the given resistance levels: Gold February Support 63100/62800 and Resistance 63500/63700." "Silver March support is 74000/73400 and resistance is 75000/75500," Khare noted.
