Silver declines 0.3% while gold prices climb ahead of US inflation data

Non-yielding bullion hit a record high of $2,222.39 this past week as a result of Fed members’ signals that they expect interest rates to drop by 0.75% by the end of 2024.

Money

By Sneha Sengupta On Mar 26, 2024

Gold prices rose on Tuesday, helped by a fall in the value of the US dollar, as investors awaited new data to evaluate inflation trends, which are important to comprehend the Federal Reserve’s interest rate policy.

Spot gold increased by 0.5% to $2,182.77 per ounce at 09:58 a.m. EDT (1358 GMT) following a 1.3% spike earlier in the day. In the meantime, April delivery U.S. gold futures saw a 0.3% gain, closing at $2,183.00.

This increase was facilitated by the 0.1% decline in the value of the dollar index, which made gold more accessible to buyers abroad.

The market is focused on Friday’s expected release of the U.S. Core Personal Consumption Expenditure Price Index data [PCE].

In the meantime, non-yielding bullion hit a record high of $2,222.39 this past week as a result of Fed members’ signals that they expect interest rates to drop by 0.75% by the end of 2024.

Precious metal trading on the Multi Commodity Exchange (MCX) has been very busy, with a particular emphasis on gold futures contracts that are scheduled to expire on April 5, 2024, at a price of ₹65,961 per 10 kilos.

“Gold traded higher by 300rs around 66300 in MCX as Comex gold found support near 2170$ and rallied to 2195$ with backed up from the FED’s dovish statements the gold prices are broadly in positive trend but with resistance been seen at 2200-2205$ zones for the week. US GDP number son Thursday & Core PCE price index on Friday will be tracked keenly as they provided important impetus on FED’s watch tool,” stated Jateen Trivedi, VP Research Analyst at LKP Securities.

Experts predict that gold prices will be rangebound until they hold above the support level of 65,440/65,150

“Gold is seen stuck in a range as we look ahead to more economic data and the central bank action on the interest rates, some caution is seen in the market ahead of the U.S. GDP data on Thursday and PCE & core-PCE (Fed preferred inflation indicator) on Friday. However, rising consensus for a rate cut in June by the BoE, ECB and Fed in the June meeting is seen supportive to the bullion,” added Pranav Mer, VP – Research (Commodity & Currency) BlinkX and JM Financial.

Platinum increased by 0.2% to $904.62, palladium decreased by 0.2% to $1,002.41, while silver suffered a 0.4% loss to $24.57.