Gold price today: Both gold and silver are trading lower in Monday’s session as investors appear to be booking profits after recent gains, while the strengthening US dollar is also keeping safe haven assets under pressure.
After closing last week with a 1.35% surge, the April futures contract on Comex dropped $65 per troy ounce to reach the day’s low of $4,981 on 16 February.
The latest batch of US economic data has painted a mixed picture regarding Federal Reserve interest rate cuts.
US consumer prices increased less than expected in January, coming in below estimates, while job growth unexpectedly accelerated during the same month.
Federal Reserve Bank of Chicago President Austan Goolsbee said on Friday that interest rates could go down, but noted that services inflation remained high.
Market participants anticipate that the US central bank will keep rates steady at its next meeting on 18 March. However, they are currently pricing in a Fed rate cut in July, with a strong probability of a move in June as well.
Investors now turn to the latest Fed minutes, Q4 GDP data, and the Fed-preferred core PCE price index report for further guidance on the monetary outlook.
The US dollar index, which measures the currency against six major peers, rose 0.17% to 96.77 in today’s trade, making greenback-priced commodities costlier to other currency holders.
On the geopolitical front, Iran is pursuing a nuclear agreement with the US that delivers economic benefits for both sides, an Iranian diplomat was reported as saying on Sunday.
US markets were closed for Presidents Day, while markets in China and several other Asian countries were shut for the Lunar New Year.
Comex silver prices slip $3.4
Silver prices, which had closed last week with a strong comeback, have kicked off the week on a lower note, with the March silver futures contract on Comex falling $3.39 to the day’s low of $74.57 per troy ounce.
Kaynat Chainwala, AVP – Commodity Research at Kotak Securities, said COMEX Gold and Silver witnessed mild profit booking earlier today, slipping to $4,981/oz and $74.5/oz, respectively, as traders locked in gains from Friday’s rally.
The previous surge was fuelled by softer US inflation and retail sales data, along with a resilient labour market, which strengthened expectations of a more accommodative Fed policy path.
She noted that gold eventually closed above $5,045/oz, marking a 1.5% weekly gain, while silver rose 1.4% to $78/oz, snapping a two-week losing streak. However, volatility persists amid subdued Chinese participation ahead of the Lunar New Year and continued choppiness in US technology stocks.
According to Chainwala, traders are now shifting focus to upcoming key data releases, particularly the Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditures (PCE) Price Index, scheduled for February 20. A softer reading could further strengthen expectations of a potential rate cut in June.
She added that market participants will also closely track the FOMC meeting minutes, US advance GDP data for December, and flash PMI readings from major global economies for further directional cues.
MCX gold drops over ₹1,770 per 10g, silver slips ₹9,152 per kg
In the domestic market, the gold April delivery contract on MCX dropped ₹1,770 per 10 grams to the day’s low of ₹1,57,353. The March silver contract also slipped ₹9,152 per kilogram to the day’s low of ₹2,54,526.
(With inputs from Reuters)
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