Gold and silver prices rise, rapid two-day decline, but dwindling hopes for rate cuts linger. All eyes on US jobs figures

Gold and silver prices rose marginally in early trading on Wednesday, November 19, breaking their two-day losing streak this week, even as fading hopes for a US interest rate cut continued to dampen sentiment for the precious metals. Attention now turns to the delayed US jobs figures due tomorrow. The lack of new data for nearly six weeks, along with hawkish commentary from several Federal Reserve officials, have dampened expectations of policy easing in December.On the MCX, December gold futures rose by Rs 160 or 0.13% to Rs 1,22,751 per 10 gram. Silver futures also reflected the revival and rose Rs 700 or 0.45% to Rs 1,55,344 per kilogram.

Fed Vice Chairman Philip Jefferson said downside risks to the labor market have increased compared to upside risks to inflation, although he stressed that any additional rate cuts would need to be approached “slowly.” With inflation still persistent and the US labor market showing resilience even after two rate cuts this year, several Fed policymakers have indicated caution about further monetary easing.

In international markets, the yellow metal softened on Wednesday as a firmer dollar weighed on the metal, with traders looking to the minutes of the Federal Reserve meeting and upcoming US jobs data for clues on future interest rate movements.

Spot gold fell 0.2% to $4,059 an ounce, while U.S. gold futures for December delivery fell 0.1% to $4,061.60. The dollar index rose 0.1%, making the precious metal more expensive for buyers who hold other currencies. In the broader precious metals basket, spot silver was steady at $50.70 an ounce, platinum fell 0.5% to $1,527.63 and palladium fell 0.3% to $1,396.68.

Gold is a non-interest-bearing asset and is typically favored in low interest rate environments and during periods of economic stress. Meanwhile, the US government’s reopening after a record 43-day shutdown eased some investor jitters and restored normal publishing of economic indicators.

How should you trade gold?

“Traders will keep a close eye on Thursday’s September jobs report for insights into the health of the US economy, while the release of the Fed’s latest minutes on Wednesday will provide additional interest rate guidance. Markets currently imply a 43% probability of a 25 basis point rate cut in December, compared to over 60% earlier this month. MCX Gold December could fall to Rs 1,22,000-1,21,700/10g as the prices in global markets are on a downward trend,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities.

Gold rates in physical markets

Gold Price Today in Delhi

The standard gold price (22 carat) in Delhi is Rs 90,792/8 gram, while the price of pure gold (24 carat) is Rs 99,040/8 gram.

Gold Price Today in Mumbai

The standard gold price (22 carat) in Mumbai is Rs 90,672/8 gram, while the price of pure gold (24 carat) is Rs 98,920/8 gram.

Gold Price Today in Chennai

The standard price for gold (22 carat) in Chennai is Rs 91,192/8 gram, while the price for pure gold (24 carat) is Rs 99,488/8 gram.

Gold Price Today in Hyderabad

The standard gold price (22 carat) in Hyderabad is Rs 90,752/8 gram, while the price of pure gold (24 carat) is Rs 98,920/8 gram.

(Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of The Economic Times)