Gold and silver: Prior to US inflation statistics prices decline on the MCX
Gold and silver: The local futures market saw a decline in gold and silver prices Thursday morning as speculators booked profits after the recent surge to all-time highs.
Precious metal prices were also impacted by a little increase in the US dollar and prudence ahead of important US inflation data.
MCX gold futures for February were down 0.20 percent at Rs 1,34,619 per 10 grams at the start of trading.
“Gold in INR has resistance around Rs 1,35,350–1,35,970 and support at Rs 1,33,850–1,33,110. According to analysts, silver has resistance around Rs 2,08,810, 2,10,270, and support at Rs 2,05,650-2,03,280.
March futures for MCX silver fell 0.47 percent to Rs 2,06,451 per kilogram.
Following a successful session in which gold and silver closed at high levels, the decline occurred.
Gold February futures on the MCX ended the day Wednesday at Rs 1,34,894 per 10 grams, up 0.36 percent.
The price of silver rose considerably, reaching a session high of Rs 2,07,833 per kg and finishing 4.9% higher at Rs 2,07,435 per kg.
The US Consumer Price Index data for November, which is expected to be announced later on Thursday, is now being eagerly watched by market players.
The Personal Consumption Expenditures inflation report, which is coming on Friday, is also anticipated by investors.
Expectations on the US Federal Reserve’s future interest rate trajectory are anticipated to be significantly influenced by these inflation figures.
If the inflation report is lower than what the market anticipated, analysts predict that gold prices would rise even more since lower inflation would boost prospects of interest rate reduction.
Such forecasts have already been reinforced by recent labor market statistics, as the US unemployment rate increased to 4.6% in November, the highest level since September 2021.
The possibility that the US Fed would lower interest rates by 25 basis points in January has grown as a result of this.
Investors are also watching the Bank of Japan’s policy decision, which is expected on Friday, in addition to US data.
It is generally anticipated that the central bank would increase its benchmark interest rate to the highest level in over thirty years. This action might cause volatility in the world’s financial markets and affect the price of precious metals.