Gold prices saw a moderate increase, while silver prices surged significantly on Wednesday. This rise was fueled by optimism surrounding a potentially more accommodative stance from the Federal Reserve, following soft US consumer spending data. MCX gold April futures rose by 0.71% to reach Rs 1,57,909 per 10 grams during the day, with MCX silver March futures climbing 2.67% to Rs 2,59,300 per kg. The dollar index dipped to 96.59 from 96.80, making gold more affordable for international buyers due to the weaker dollar. This decline in the dollar value also played a role in boosting precious metal prices.
In global commodity markets, both gold and silver prices edged up as US Treasury bond yields decreased after disappointing December retail sales figures. Analysts noted that the lower-than-expected retail sales indicated a potential slowdown in consumer spending, raising concerns about economic growth. Market expectations now include at least three rate cuts this year, compared to the previous forecast of two, which is seen as a positive factor for gold due to anticipated looser monetary policies.
COMEX Gold was trading in the $4,900–$5,100 range, following a significant correction from its previous highs above $5,500–$5,600. Despite this pullback, the overall upward trend for COMEX Gold remains intact, viewed more as a healthy profit-taking phase rather than a structural setback, according to market participants. Silver’s long-term outlook remains positive due to industrial demand and supply limitations, with the $65–$70 range serving as a solid support level for COMEX Silver.
An analyst mentioned specific support and resistance levels for both gold and silver, indicating key price points to watch. Investors are closely monitoring indicators like non-farm payrolls and inflation data for further insights into the Federal Reserve’s future interest rate decisions.
