Gold traded higher while silver registered sharp gains on Wednesday after softer-than-expected US retail sales data strengthened expectations of interest rate cuts by the Federal Reserve.
On the Multi Commodity Exchange (MCX), gold April futures climbed 0.71 per cent to Rs 1,57,909 per 10 grams on an intra-day basis. Silver March futures gained 2.67 per cent to Rs 2,59,300 per kg.
The dollar index eased to 96.59 from 96.80 in the previous session, making dollar-denominated bullion cheaper for overseas buyers and lending further support to precious metals.
In international markets, gold and silver edged higher as US Treasury yields declined following weak December retail sales figures. Analysts said the data signalled a slowdown in consumer spending, raising concerns about growth momentum.
Markets are now pricing in at least three rate cuts this year, compared to two earlier in the week, boosting demand for non-yielding assets such as gold.
COMEX gold traded within the $4,900–$5,100 range after correcting from highs above $5,500–$5,600. Market participants said the broader uptrend remains intact, describing the recent pullback as profit-booking rather than a structural reversal.
Silver, despite heightened volatility, continues to draw support from industrial demand and supply constraints. Analysts said the $65–$70 band remains a key support zone for COMEX silver.
At the domestic level, analysts pegged gold support at Rs 1,55,500 and Rs 1,54,000, with resistance at Rs 1,57,700 and Rs 1,59,000. For silver, support levels were seen at Rs 2,44,000 and Rs 2,48,800, while resistance was placed at Rs 2,60,000.
Investors are now awaiting US non-farm payroll and inflation data for further signals on the Federal Reserve’s policy trajectory.
(IANS)
