Gold and Silver Prices Dip as Market Awaits RBI MPC Meeting Outcome

Today, on December 7, 2023, the prices of precious metals saw a decline in the domestic futures market. Investors and traders positioned themselves cautiously in anticipation of the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) meeting outcomes. A general expectation in the market holds that the RBI may choose to maintain the status quo on interest rates while potentially adopting a less aggressive stance in its monetary policy.

Within the market, the Multi Commodity Exchange (MCX) showcased that gold futures due on February 5th edged down by 0.11 percent or Rs 69, to be priced at Rs 62,371 for 10 grams. During the early trading hours, gold oscillated between a high of Rs 62,425 and a low of Rs 62,339. Concurrently, silver futures with a due date of March 5th also saw a drop of 0.54 percent, resulting in a Rs 404 decrease, trading at Rs 74,427 per kilogram.

Market analysts maintain a watchful stance, anticipating continued steadiness in prices but with potential volatility following the evening's release of significant economic data. Neha Qureshi, a Senior Technical & Derivative Research Analyst at Anand Rathi Commodities & Currencies, believes that amidst fluctuating circumstances, it is advisable to sell gold futures at a rise towards Rs 62,500, with a stop loss at Rs 62,700 and target at Rs 62,100. Similar recommendations are made for silver futures, advocating selling on a rise at about Rs 75,000, maintaining a stop loss at Rs 76,000 and a target of Rs 73,500.

Alongside the domestic trends, the international markets also reflected a downtrend with COMEX gold declining by 0.22 percent, standing at $2043.3 per ounce.

The US dollar's surge against major currencies could impact the performance of gold and silver as well, given the recent US employment data which showed slower job growth. Despite this, the dollar's strength continued to rise. Today, market spectators will closely monitor economic indicators like the Revised GDP from the Eurozone and the weekly Jobless claims from the US. Currency analysts from Motilal Oswal Financial Services, including Gaurang Somaiya, anticipate a sideways trend in the USDINR spot trade, with an expected range between 83.20 and 83.50.

City-wise Gold Prices in India

Here is a cursory glance at the varying prices of 24k gold across some major Indian cities:

• Mumbai: Rs 63,895 for 10 grams
• Delhi: Rs 64,055 for 10 grams
• Chennai: Rs 64,105 for 10 grams
• Kolkata: Rs 64,080 for 10 grams
• Bengaluru: Rs 64,160 for 10 grams
• Hyderabad: Rs 64,110 for 10 grams
• Ahmedabad: Rs 64,135 for 10 grams
• Bhopal: Rs 64,020 for 10 grams
• Visakhapatnam: Rs 64,120 for 10 grams
• Jaipur: Rs 63,950 for 10 grams
• Lucknow: Rs 64,045 for 10 grams
• Coimbatore: Rs 64,160 for 10 grams
• Madurai: Rs 64,140 for 10 grams

Please note these figures are indicative and derived from trusted sources. It is prudent for investors to confirm prices with local jewellers before engaging in transactions.

Gold, Silver, Prices