Gold, Silver prices rise, snap 2-day fall but fading rate-cut hopes linger. All eyes on US jobs data
Gold and silver prices gained marginally in early trade on Wednesday, November 19, snapping their two-day losing streak this week, even as fading hopes of a US interest rate cut continued to dampen sentiment for the precious metals. Attention now turns to the delayed US jobs data due tomorrow. The absence of fresh data for nearly six weeks, along with hawkish commentary from multiple Federal Reserve officials, has tempered expectations of a December policy easing.
On the MCX, December gold futures were up Rs 160 or 0.13%, rising to Rs 1,22,751 per 10 grams. Silver futures also mirrored the uptick, gaining Rs 700 or 0.45% to Rs 1,55,344 per kilogram.
Fed Vice Chair Philip Jefferson said that downside risks to the labour market have increased compared with the upside risks to inflation, though he emphasised that any additional rate cuts should be approached “slowly.” With inflation still sticky and the US job market showing resilience, even after two rate reductions this year, several Fed policymakers have signalled caution on further monetary easing.
In the international market, the yellow metal softened on Wednesday as a firmer dollar weighed on the metal, with traders looking ahead to the Federal Reserve’s meeting minutes and upcoming U.S. jobs data for clues on future interest rate moves.
Spot gold eased 0.2% to $4,059 per ounce, while U.S. gold futures for December delivery inched down 0.1% to $4,061.60. The dollar index rose 0.1%, making bullion costlier for buyers holding other currencies. In the broader precious metals basket, spot silver was steady at $50.70 per ounce, platinum slipped 0.5% to $1,527.63, and palladium dipped 0.3% to $1,396.68.
Gold being a non-interest-bearing asset, typically finds favour in low-rate environments and during periods of economic strain. Meanwhile, the reopening of the U.S. government after a record 43-day shutdown eased some investor jitters and restored the normal release of economic indicators.
How should you trade gold?
“Traders will closely watch Thursday’s September jobs report for insights into the health of the US economy, while the release of the Fed’s latest meeting minutes on Wednesday will provide additional rate guidance. Markets currently imply a 43% probability of a 25bps rate cut in December, down from over 60% earlier this month. MCX Gold December may fall to Rs 1,22,000-1,21,700/10g since the prices in the world markets are on a declining trend,” Jigar Trivedi, Senior Research Analyst at Reliance Securities, said.
Gold rates in physical markets
Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 90,792/8 grams, while pure gold (24 carat) prices stand at Rs 99,040/8 grams.
Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 90,672/8 grams, while pure gold (24 carat) prices stand at Rs 98,920/8 grams.
Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 91,192/8 grams, while pure gold (24 carat) prices stand at Rs 99,488/8 grams.
Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 90,752/8 grams, while pure gold (24 carat) prices stand at Rs 98,920/8 grams.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)