On Wednesday, the gold market in India maintained stability, with prices unchanged as investors awaited crucial US inflation data later in the week. MCX gold prices saw a slight increase of 0.05%, reaching ₹62,209 per 10 grams. Silver prices also experienced a modest gain of 0.08%, reaching ₹72,105 per kg. This trend of stability was mirrored in the international market, with both Spot and US gold futures noting marginal increases.
International Market Trends
Internationally, precious metal prices remained steady as investors hesitated to make significant moves before the release of US inflation data. Spot gold rose 0.1% to $2,031.30 per ounce, and US futures climbed 0.2% to $2,036.90 per ounce. With traders awaiting clarity on the Federal Reserve’s rate-cut decisions, precious metals struggled to gain momentum. Analysts identify potential support for gold MCX prices at ₹61,800 and resistance at ₹62,600, while MCX silver prices have support at ₹71,000 and resistance at ₹73,000.
Key Influencing Factors for The Gold
Despite a slight increase in the dollar index and US Treasury note yields above 4%, bullion prices remained resilient. Thursday’s US consumer price inflation report is highly anticipated, with a projected 0.2% monthly increase and a 3.2% annual rise. The market’s uncertainty, combined with geopolitical risks and concerns about China’s economic recovery, is prompting caution among investors, influencing the price of the yellow metal.
In conclusion, the gold market’s trajectory has close ties to the forthcoming US inflation data. Factors such as the Federal Reserve’s rate-cut decisions and geopolitical uncertainties continue to influence market dynamics. Traders are correlating economic developments with the prices of 9-carat and commodity gold. With significant influence expected from the upcoming inflation data, investors should closely monitor these developments to navigate the future of the precious metal market effectively.
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