This comes as the US dollar index is hovering near a three-month low
Gold opened on the Multi Commodity Exchange (MCX) on Tuesday at Rs 61,619 per 10 grams and hit an intraday low of Rs 61,596. In the international market, prices hovered around $2,014.95 per troy ounce.
Meanwhile, silver opened at Rs 74,806 per kg, hit an intraday low of Rs 74,490 on the MCX, and hovered around $24.6 per troy ounce in the international market.
Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “Gold hit a six-month high as a softer dollar, and expectations of a pause in the Federal Reserve's monetary tightening helped bullion move above the key $2,000 level.”
“On breaching the current hurdle, it may go up to $2,033 and $2,050 per ounce levels in the short to medium term. On MCX, the gold rate today is around Rs 61,370 and it may go up to Rs 61,700 and Rs 62,400 per 10 gm levels in short to medium term,” added Anuj Gupta, Head of Commodity and Currency at HDFC Securities.
The dollar index hovered near a three-month low, while the US 10-year yields tumbled yesterday around its two-month lows. CME Fed- Watch tool suggests investors are widely expecting the U.S. central bank to hold rates in December while pricing in about a 50-50 chance of easing in May next year.
Notions that the US Federal Reserve is done raising interest rates, following lower inflation and other important economic data points, is supporting both gold and silver prices.
