Gold Prices Remain Range-Bound Despite Recovery from One-Month Low

Gold Prices Remain Range-Bound Despite Recovery from One-Month Low

VoM News Desk | January 13, 2024 | 09:37 AM IST | Daily Gold Prices | Follow on Google News

Gold Prices Remain Range-Bound Despite Recovery from One-Month Low/ANI

Gold Prices Remain Range-Bound Despite Recovery from One-Month Low

Despite a swift recovery from a one-month low, gold prices closed 0.30% lower in the past week. The gold futures contract for February 2024 expiry on the Multi Commodity Exchange (MCX) finished at ₹62,390 per 10 gm on Friday. In the international market, spot gold closed at $2,048 per ounce. Silver prices on MCX finished at ₹72,573 per kg, while in the international market, it ended at $23.18 per ounce.

Factors Influencing Gold Prices:

1. Lower Domestic Demand: Pressure on bullions was attributed to lower domestic demand due to the month of Kharmas.
2. Indian Rupee’s Strength: The Indian rupee reached a four-month high against the US dollar, affecting the MCX gold rate in the domestic market.
3. US CPI Data: In the international market, higher US CPI data signaled increased demand for gold.
4. Producer Price Index (PPI): Softer inflation indicated expectations of a potential rate cut by the US Fed in March, supporting gold prices.
5. Middle East Tensions: Escalating tensions in the Middle East region contributed to heightened demand for gold as a safe-haven asset.

Gold Price Outlook:

• Gold may trade range-bound in the $2,010 to $2,080 per ounce range in the spot market.
• On MCX, it may continue to trade in the ₹62,200 to ₹63,500 per 10 gm range.
• A potential rate cut by the US Fed and Middle East tensions could provide support to gold prices.
• Expectations of fresh demand in the physical market after Sankranti celebrations in India.

Key Levels to Watch:

• International Market: Gold prices trading in the $2,080 to $2,110 per ounce range.
• MCX: Gold prices trading in ₹62,200 to ₹63,500 per 10 gm range.
• Investors advised to maintain a “buy on dip” strategy as Middle East tension may support precious metals.

Source: Economic Times

VoM News Desk

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