Gold opened on the Multi Commodity Exchange (MCX) on Wednesday at Rs 60,166 per 10 grams and hit an intraday low of Rs 60,156. In the international market, prices hovered around $1,965.45 per troy ounce. Meanwhile, silver opened at Rs 71,794 per kg, hit an intraday low of Rs 71,721 on the MCX, and hovered around $23.12 per troy ounce in the international market.
Anuj Gupta, Head of Commodity and Currency at HDFC Securities, said, “Gold prices recovered yesterday from lower levels and closed higher by 0.37% at 60,066 levels. Silver closed higher by 2.31% and closed at 71,562 levels.”
CME Fed-Watch tool suggests that the market is pricing in a 100% chance that the US central bank will leave rates unchanged in December versus 86% before the inflation report. The dollar index fell 1%, hovering around the 104 mark, while the benchmark 10-year U.S.
Gupta said, “The dollar Index is trading at 10-week low levels after data for U.S. consumer prices showed signs that underlying inflation slowed in October, increasing the odds that the Federal Reserve is done hiking interest rates.”
Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “Gold prices inched higher as the Dollar and Treasury yields retreated after softer than expected U.S. consumer inflation data, which fuelled more bets that the Federal Reserve may be done hiking interest rates.”
