Gold prices began trading on the Multi Commodity Exchange (MCX) on Monday at Rs 65,348 per 10 grams and fell to an intraday low of Rs 65,180. On the international market, prices were around $2,147.45 per ounce.
Meanwhile, silver opened at Rs 75,400 per kg and fell to an intraday low of Rs 75,184 on the MCX. In the foreign market, the price remained about $25.19 per ounce.
Manav Modi, Analyst, Commodity and Currency, MOFSL, stated, "Gold prices inched lower, marking their first weekly drop in four on the back of a rise in the Dollar index, US yields, a change in interest rate expectations, and mixed economic data from the US."
Higher-than-expected inflation puts pressure on the Fed to keep interest rates high, which weighs on gold. In the prior week, US inflation and weekly jobless claims boosted the dollar, but industrial production and retail sales fell, supporting bullions.
The US dollar index surged from ~102.60 to ~103.40, marking one of its highest weekly advances since mid-January. Additionally, US 10-year rates rose from 4.1% to 4.3%.
Traders continue to bet for interest rate decreases in June, however the chances of rates dropping in June are 59%, down from 72% previously, according to the CME FedWatch Tool.
“Focus now shifts to the Fed policy meeting scheduled later this week, where the expectation is that the central bank will keep the rates unchanged, but comments from the Governor and forecasts will be important to keep an eye on," said Modi.
Amit Khare, Associate Vice President of GCL Broking, stated that "April gold closed negative at 65542 (-0.08%), and May silver closed positive at 75650 (0.57%). According to the daily chart, bulls are trading in a mixed zone, gold is trading in an overbought zone, and silver is looking strong; the Momentum Indicator RSI supports this; the significant levels for the day are listed below: Gold's April support levels are 65200/65000, with resistance at 65700/66050. Silver may support 75000/74200 while resisting 76000/76500."
