Gold, Silver Prices: Yellow Metal Continues To Dip, 24-Carat Erases Rs 62,000 Mark; Focus On CPI Data

Prices of precious metals like gold and silver continued to fall in India as traders await key economic indicator inflation data on both the domestic and US fronts. 24-carat has erased its Rs 62,000 mark, while silver prices are marginally down. On the contrary, MCX gold and silver futures jumped tracking steady performance in international prices. Notably, the Federal Reserve's meetings later this week have also kept investors on the edge.

Gold Prices On December 12:

At retail stores in India, 24-carat gold is down by Rs 220 to Rs 61,910 per 10 grams on Tuesday as against Rs 62,130 per 10 grams of the previous day. Meanwhile, 1 gram to 100 grams of gold in this carat has plunged by Rs 22 to Rs 2,200.

Further, 22-carat gold slipped by Rs 200 to Rs 56,750 as against Rs 56,950 per 10 grams of the previous day. Prices of 22-carat in 1 gram to 100 gram have plummeted by Rs 20 to Rs 2,000.

18-carat gold in 10 grams is lower by Rs 170 to Rs 46,430 against Rs 46,600 of the previous day. Meanwhile, 1-gram to 100-gram in 18-carat has fallen by Rs 17 to Rs 1,700.

Silver Prices On December 12:

Silver price in 1 kg dived by Rs 100 to Rs 75,700 on Tuesday as compared to Rs 75,800 on the previous day. As for 1-gram to 100-grams of silver, prices were lower by Rs 0.10 to Rs 10.

MCX Prices:

At MCX, gold futures with February expiry were up by Rs 218 to 0.4%. The bullion traded in the range of Rs 61,232 to Rs 61,415 apiece.

Meanwhile, MCX silver futures with March expiry surged by Rs 270 or 0.4% to Rs 61,335 per 1 kg. Silver ranged from Rs 61,232 to Rs 61,415.

Comex Gold:

Spot Gold in London surged by 0.25% to trade at $1,986.78 an ounce. The day's range was at $1,981.87 - 1,989.56 per ounce.

Moreover, US gold futures with expiry of February traded higher by 0.4% to $2,001.15 an ounce. The day's range was at $1,997.10 - 2,004.75 an ounce.

What do experts say?

Rahul Kalantri, VP of Commodities, Mehta Equities said, "Recent developments, particularly in the case of silver, have led to a deterioration in their near-term chart postures, prompting fresh technical selling. Gold and silver enthusiasts are eagerly anticipating more favourable fundamental news as crucial economic data is expected later this week."

Kalantri further said, "Adding to the complexity of market dynamics, escalating tensions in the Middle East are dampening risk appetite, setting the stage for a week filled with central bank decisions, starting with the Federal Reserve on Wednesday. Today's session is likely to witness continued volatility in gold and silver prices."

He added gold finds support at $1972-1960, with resistance at $1995-2007. For silver, support is at $22.65-22.51, while resistance stands at $23.05-23.24. In terms of Indian Rupees (INR), gold has support at Rs60,870-60,710, with resistance at Rs61,280 and Rs61,470. Silver, in INR, sees support at Rs71,350-70,680, and resistance at Rs72,570 and Rs73,030. "

On the previous day, Kalantri added, gold and silver prices experienced a decline, closing near the day's low this Monday. The metals market faced bearish pressures from a stronger U.S. dollar index and a modest increase in U.S. Treasury yields at the beginning of the trading week.

CPI inflation data:

Both US and India will announce their consumer price index (CPI) for November 2023 will be announced on December 12, 2023.

US inflation data along with central bank meetings are likely to give clarity on the Fed's interest rates prospects ahead.

For India, ICRA expects CPI inflation would climb to 5.6% by December 2023, and remain in a wide range thereafter for the next two quarters, before a particularly benign base effect temporarily dampens it in Q2 FY2025. The print for November 2023 would be influenced by the extent to which onion prices climb further over the next two week.

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