Gold and Silver Prices Today: Precious Metals Facing Significant Monthly Decline

Gold and Silver Prices Today:As we approach the end of the month, both gold and silver prices are experiencing notable fluctuations. Gold, often considered a safe-haven asset, is on track for its most substantial monthly drop since February. Here’s an overview of the current prices and factors influencing the precious metals market.

Current Prices

  • Gold: On Friday, gold opened on the Multi Commodity Exchange (MCX) at Rs 57,382 per 10 grams, reaching an intraday low of Rs 57,290. In the international market, gold prices hovered around $1865.79 per troy ounce.
  • Silver: Silver opened at Rs 71,149 per kg, with an intraday low matching at Rs 71,149 on the MCX. In the international market, silver was trading around $22.82 per troy ounce.

Expert Analysis

  • Anuj Gupta, HDFC Securities: Gold prices have experienced a sharp correction of 0.94%, closing at a six-month low of Rs 57,128. This decline is attributed to the strengthening of the dollar index. The Federal Open Market Committee (FOMC) decided to keep interest rates steady but indicated a potential hike later this year. For trading, gold is expected to range between $1855 to $1850 in the international market and between 56800 to 57500 levels on the MCX.
  • Amit Khare, GCL Broking: Daily charts for bullion indicate an oversold condition, suggesting the possibility of a short-covering rally in the near future.

Market Trends

  • Gold’s Losing Streak: Spot gold has extended its losing streak for the fourth consecutive day. This decline is driven by expectations that interest rates will remain higher for an extended period, which can reduce the demand for non-yielding assets like gold.
  • US Economic Outlook: US GDP growth for Q2 was maintained at 2.1%, reflecting the economy’s resilience. However, concerns arise due to a potential government shutdown and an ongoing strike by auto workers, which could impact the economic outlook for the remainder of 2023.
  • US Housing Market: Pending US home sales dropped by 7.1% in August, primarily due to surging mortgage rates. Federal official Barkin has expressed uncertainty about the need for further monetary policy changes in the coming months.

Focus on US Core PCE Price Index

  • Manav Modi, Motilal Oswal Financial Services: The dollar has retreated from a 10-month high, and Treasury yields have eased off a 16-year peak, although both are still on track for strong quarterly performances. Investors are keenly awaiting the release of the US Core Personal Consumption Expenditures (PCE) price index data, which will provide insights into inflation trends.

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