Gold futures on the Multi Commodity Exchange (MCX) started trading at Rs. 56255.00 per 10 grams, showing a marginal increase of 0.05%. At the same time, the futures price of silver opened at the level of Rs.70. 65600.00 per kg, with a marginal reduction of 0.05%.
As of 3:24 PM GMT, spot silver saw a decline of 0.01% and was trading at $21.72 an ounce. Platinum reached a price of $916.60. Palladium, on the other hand, was trading at $1,498.29.
Commodity market experts attributed the strengthening of the US dollar against major global currencies to a possible rate hike by the US Fed and a series of strong economic data from the US. He clarified that the recent rise in the dollar index, which had fallen below the 103 mark, should be seen in this context. As a result, rise in US dollar rates has restricted the upside in gold prices.
According to market expert Sugandha Sachdeva, there are several factors that are restricting the upside in gold prices. These include concerns about the US Federal Reserve implementing tightening policies for an extended period and a series of strong economic data from the US. Due to this, gold prices in the domestic markets have come down to a five-week low. One such data point is a 3% increase in US retail sales in January, which was higher than the expected 1.8% and indicated stronger consumer spending. Additionally, monthly US producer prices rose by the most in seven months in January, suggesting a rebound in US wholesale-level inflation.