Nevertheless, ECB Governor Christine Lagarde recently expressed a dovish stance, noting that rapid wage growth in the eurozone is displaying early signs of deceleration.
On Monday, gold prices commenced trading on the Multi Commodity Exchange (MCX) at Rs 62,263 per 10 grams, reaching an intraday low of Rs 62,255. Internationally, prices hovered around $2,025.38 per troy ounce.
Simultaneously, silver opened at Rs 71,854 per kg on the MCX, hitting an intraday low of Rs 71,853. In the global market, the price remained around $22.95 per troy ounce.
Anuj Gupta, Chief of Commodity and Currency at HDFC Securities, said, “Gold prices are expected to trade in the $1980-2040 range with a moderate bearish bias. The upside looks limited at $2035 and $2040 levels. MCX Gold April Future has support at 61950/61600 and resistance at 62320/62600.”
“The silver short-term trend remains bearish until the price trades below the $23.50 level, and we expect the price to correct to the $21.50 level in the short term. The MCX Silver May future has support at 72400/71700 and resistance at 73780 and 74500,” added Gupta.
Additionally, Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “Gold prices traded steady in the previous session as investors’ attention shifted to the US Federal Reserve’s policy meeting due this week for more insights into the interest rate outlook. US prices rose moderately in December, keeping the annual increase in inflation below 3% for a third straight month, which could allow the Fed to start cutting interest rates this year.”
Nevertheless, recent data from last week indicated that the US economy surpassed growth projections in the fourth quarter, providing the Federal Reserve with additional leeway for implementing stricter monetary policy conditions. The US economy expanded at an annualized rate of 3.3% in the final quarter of the previous year, concluding a robust 2023 that defied concerns of a recession. In a similar vein, the ECB maintained rates at 4%, with ECB Governor Christine Lagarde expressing a dovish outlook by highlighting the early signs of slowing rapid wage growth in the eurozone and suggesting the potential for interest rate cuts.
"Though the general anticipation in the markets is for the Fed to keep interest rates steady during its policy meeting on Jan. 30-31, expectations of a rate cut by March have been scaled down. Today's attention will be on EU GDP and US Consumer Confidence data," stated Modi.
