Gold Rate Today: Yellow metal down as US dollar jumps, Fed minutes eyed

After hitting a nearly one-week high on Monday, gold prices marginally declined on Tuesday amid a stronger dollar and elevated Treasury yields, as investors awaited the minutes of the last US Federal Reserve policy meeting for more clues on its interest rate cut timing.

The April gold futures were trading at Rs 61,954 per 10 grams on the MCX at 11.30 am and were down by Rs 50 or 0.08% from Monday’s closing price. Meanwhile, the March Silver futures were trading at Rs 71,130 per kg and were lower by Rs 176 or 0.25% around this time.

Spot gold was flat at $2,018.03 per ounce. Most of the US markets were closed on Monday for the President’s Day holiday. US gold futures rose 0.3% at $2,029.10 per ounce.

“Gold prices are expected to remain elevated, fueled by a weakening US dollar, escalating Middle East tensions, while investors keenly await insights from the Federal Reserve’s upcoming minutes,” Saish Sandeep Sawant Dessai, Analyst at Angel One, said.

Investors are closely monitoring the upcoming Fed minutes for insights into potential interest rate cuts, with markets currently pricing in a 74% likelihood of a cut in June, as revealed by the CME Fed Watch Tool, he said.

The dollar index was up 0.1%, and yields on benchmark 10-year Treasury notes were up near 4% levels, making greenback-priced bullion less appealing to overseas buyers.The minutes from the Fed’s January policy meeting are due on Wednesday.Hotter-than-expected US consumer prices and producer prices data last week dashed hopes around a Fed rate cut in March.

Markets are currently pricing a 75% chance of a cut in June, according to the CME Fed Watch Tool. Lower interest rates decrease the opportunity cost of holding bullion.

“Technical levels indicate that gold finds support at $2002-1988 with resistance at $2028-2040, while silver’s support lies at $22.78-21.60 with resistance at $23.12-23.25,” said Rahul Kalantri, VP Commodities, Mehta Equities.

In terms of INR, gold has support at Rs61,740-61,570 and resistance at Rs 62,180-62,420, whereas silver finds support at Rs 70,540-69,980 and resistance at Rs 71,850-72,480, Kalantri said.

Among other precious metals, spot platinum fell 0.6% to $893.16 per ounce, palladium was down 0.8% to $946.41, and silver also fell 0.4% to $22.93 per ounce.

(With inputs from agencies)

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