NEW DELHI — Gold and silver prices moved higher on Wednesday, supported by expectations of a more accommodative U.S. Federal Reserve following weaker-than-expected American consumer spending data.
On the Multi Commodity Exchange, gold futures for April rose 0.71 percent to trade at ₹1,57,909 per 10 grams during intraday trading. Silver futures for March posted sharper gains, climbing 2.67 percent to ₹2,59,300 per kilogram.
The rally was aided by a softer U.S. dollar, with the dollar index easing to 96.59 from 96.80 in the previous session. A weaker dollar typically makes dollar-denominated commodities more attractive to overseas buyers, lending support to bullion prices.
In global markets, gold and silver edged higher as U.S. Treasury yields declined after December retail sales data came in below expectations. Analysts said the weak retail numbers signaled a slowdown in consumer spending, raising concerns about the pace of economic growth.
Market participants are now factoring in at least three interest rate cuts by the Federal Reserve this year, up from expectations of two earlier in the week. Anticipation of easier monetary policy has provided a strong tailwind for precious metals.
COMEX gold traded in the $4,900 to $5,100 range after correcting from recent highs above the $5,500 to $5,600 zone. Analysts said the broader uptrend remains intact, with the recent pullback viewed as healthy profit booking rather than a shift in the overall trend.
Silver continues to find long-term support from steady industrial demand and supply constraints, despite elevated price volatility. Market participants noted that the $65 to $70 range remains a key structural support zone for COMEX silver.
Analysts said gold has support near ₹1,55,500 and ₹1,54,000, with resistance seen at ₹1,57,700 and ₹1,59,000. For silver, support levels are placed at ₹2,44,000 and ₹2,48,800, while resistance is seen near ₹2,60,000.
Investors are now closely watching upcoming U.S. nonfarm payrolls and inflation data for further clues on the Federal Reserve’s interest rate outlook. (Source: IANS)
