Daijiworld Media Network - New Delhi
New Delhi, Feb 11: Precious metals advanced on Wednesday, with gold posting moderate gains and silver rallying sharply, as softer US economic data strengthened expectations of a more accommodative stance from the Federal Reserve.
On the Multi Commodity Exchange (MCX), gold futures for April delivery rose 0.71 per cent to trade at Rs 1,57,909 per 10 grams during intra-day deals. Silver futures for March delivery outperformed, climbing 2.67 per cent to Rs 2,59,300 per kg.
The dollar index slipped to 96.59 from 96.80 in the previous session, making dollar-denominated bullion more affordable for global investors. The softer greenback provided additional support to gold and silver prices.
In global markets, both metals edged higher as US Treasury yields retreated following weaker-than-expected December retail sales figures. The data indicated a slowdown in consumer spending, fuelling concerns over economic momentum and reinforcing bets on potential rate cuts.
Market participants are now factoring in the possibility of at least three interest rate reductions this year, compared with expectations of two cuts earlier in the week. Lower interest rates typically benefit non-yielding assets like gold by reducing the opportunity cost of holding them.
COMEX gold traded in the $4,900–$5,100 range after witnessing a sharp correction from earlier highs above $5,500–$5,600. Analysts noted that the broader bullish trend remains intact, describing the recent pullback as healthy profit booking rather than a reversal of the uptrend.
Silver, despite heightened volatility, continues to draw support from steady industrial demand and tight supply dynamics. Analysts highlighted the $65–$70 range as a key long-term support zone for COMEX silver.
In the domestic market, analysts identified immediate support for gold at Rs 1,55,500 and Rs 1,54,000, with resistance levels placed at Rs 1,57,700 and Rs 1,59,000. For silver, support is seen around Rs 2,44,000 and Rs 2,48,800, while resistance is pegged near Rs 2,60,000.
Investors are now awaiting upcoming US non-farm payrolls and inflation data for clearer signals on the Federal Reserve’s interest rate path.