Gold and Silver Prices 05 – April 2024 Updates

Gold and Silver Prices 05 – April 2024 Updates

Gold and Silver Prices 05 – April 2024 Updates

After reaching record highs, gold and silver prices faced selling pressure as the US dollar strengthened in early Friday trading. The MCX gold rate for June 2024 fell to ₹69,297 per 10 gm, down 0.50% from Thursday’s close, while spot gold prices dipped below $2,300 per ounce.

Factors Driving Price Decline & Focus on US Economic Data

The decline in precious metal prices is attributed to the rebound in the US dollar rates. The US dollar index, after retreating from a four-and-a-half month high, witnessed a resurgence in early trading, exerting downward pressure on gold and silver prices.

Federal Reserve officials’ cautious stance on rate reductions, coupled with higher-than-expected unemployment benefit claims, has heightened anticipation for the US March non-farm payrolls report. This data is expected to provide insights into the timing of potential rate cuts by the Fed.

Outlook and Support Levels

The outlook for gold remains cautiously optimistic, with prices expected to consolidate near recent highs amidst geopolitical tensions and uncertainty surrounding US interest rate cuts. Key support levels for gold and silver are at $2,280 and $26.50 per ounce, respectively. Maintaining stop losses at ₹69,000 per 10 gm in gold and ₹78,000 per kg in silver is advised for investors in the domestic market, according to Anuj Gupta of HDFC Securities.