Gold opened on the Multi Commodity Exchange (MCX) on Wednesday at Rs 62,533 per 10 grams and hit an intraday low of Rs 62,502. In the international market, prices hovered around $2,026.65 per troy ounce.
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Meanwhile, silver opened at Rs 74,951 per kg, hit an intraday low of Rs 74,951 on the MCX, and hovered around $23.92 per troy ounce in the international market.
Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “Gold prices inched higher in the previous session as market participants continue to discount three rate cuts signalled by the Fed next year.”
In their policy meeting, the US central bank kept the interest rate unchanged, lowered the growth forecast, and raised prospects for three rate cuts in 2024.
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Some gains in safe-haven assets have been capped after several Federal Reserve officials downplayed expectations that a dovish pivot by the central bank was imminent, which helped stem recent losses in the dollar.
Modi said, “Resilience in the dollar- which rebounded from four-month lows this week weighed on gold prices. A slew of Fed officials this week said that market enthusiasm over immediate interest rate cuts was somewhat unfounded and that sticky inflation may keep monetary conditions tighter for longer.”
Markets have, however, retained their bets on early rate cuts, with Fed Fund futures prices showing a nearly 63% chance for a 25 basis point rate cut in March 2024.
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“Market participants are cautious ahead of the US GDP and inflation data, scheduled later this week. Today, the focus will be on UK CPI and US consumer confidence data,” said Modi.
