Investors are closely monitoring the central bank meetings scheduled for this week, particularly the US Federal Reserve’s policy outlook. This scrutiny comes as geopolitical tensions between Israel and Hamas have bolstered gold prices around $2,000, setting bullion on track for an 8% rise this month, according to Manav Modi from MOFSL.
On Tuesday, gold opened at Rs 61,117 ($1 = Rs 83.25) per 10 grams on MCX, with an intraday low of Rs 61,110. International prices hovered around $1,992.95 per troy ounce. Silver also experienced a slight increase, opening at Rs 72,492 per kg and reaching an intraday low of Rs 72,261 on MCX before closing up by 1.50% at 72790 levels.
The market is also reacting to the retreat of US Treasury yields, though they remain high. The yield recently reached a level not seen since 2007 at 5.02%. Meanwhile, the holds firm above the 106 mark.
Investors are keeping a keen eye on the US Fed’s two-day monetary policy meeting and the US monthly jobs report due Friday. They are also watching for the Bank of England’s policy decision due this week. These events have gained significance in light of better-than-expected US GDP and core durables goods orders data.
As for trading predictions, gold may fluctuate between $1990 to $1205 levels, while silver could range between 70600 and 73500 levels. The structure of bullion appears positive with traders advised to make fresh buy positions in gold and silver near given support levels. December Gold closed at 61268 (0.15%).
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