Gold Prices Today: Yellow metal extends gains ahead of PCE data, silver up 0.6%

Spot Gold Prices

At 9:53 am EDT (1353 GMT), spot gold was up 0.6 per cent at $2,191.88 per ounce, while US gold futures rose 0.6 per cent to $2,190.50. The US Core Personal Consumption Expenditures Price Index (PCE) data for February is due on Friday. The PCE rose 0.3 per cent in January.

Alex Turro, senior market strategist at RJO Futures told news agency Reuters that he expects range-bound price action for the session as investors come into the sidelines ahead of the report. “We’ll have to see whether or not U.S. inflation here domestically is soft enough to provide this clear path to lower rates in the coming months,” said Turro.

Gold prices hit a record high last week after the US central bank’s policymakers indicated they still expect to reduce interest rates by three-quarters of a percentage point by end-2024, despite recent high inflation. 

Traders now see a 70 per cent chance of a June rate cut by the US Fed. Lower interest rates reduce the opportunity cost of holding bullion. Spot silver was up 0.6 per cent at $24.58 per ounce, platinum lost 0.6 per cent to $897.30 and palladium dropped 1.9 per cent to $974.31.

Gold Prices in India

Back home, the Multi Commodity Exchange (MCX) session, gold futures contracts set to expire on April 5, 2024, last traded 0.33 per cent higher at ₹66,320 per 10 grams. The session hit a day’s high of ₹66,499 per 10 grams so far against a previous close of ₹66,114 per 10 grams.

Jateen Trivedi, VP Research Analyst, LKP Securities said, “Gold prices in MCX were seen positive up by ₹250 at 66,350+ taking support from Comex Gold trading higher above 2192$ testing 2200$ resistance again and again everyday.”

‘’The participation in gold has increased after Fed’s policy and dovish statement which has triggered new buying momentum as broadly, gold takes support of 2,150$ and resistance of 2,200$ once prices start trading above 2,200$ escalations towards 2,250$ cannot be ruled out,” added Trivedi.

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Published: 27 Mar 2024, 09:36 PM IST