Image Source : FREEPIK Gold and Silver Prices Dip Ahead of Key U.S. Inflation Report: Traders on the Sidelines
On the Multi Commodity Exchange (MCX), gold futures began trading at Rs. 56588.00 per 10 grams, showing a slight rise of 0.16%. On the other hand, silver futures opened at Rs. 66408.00 per kilogram, with a slight decrease of 0.40%.
Gold and silver prices have declined during midday trading in the U.S. on Monday, with silver reaching its lowest level in 2.5 months and gold hitting a five-week low. The technical outlook for both metals has recently weakened, leading to some selling pressure. In addition, there is likely weak long liquidation in the gold and silver futures markets in anticipation of a crucial U.S. inflation report scheduled for Tuesday. Currently, April gold is down $10.40 at $1,864.00 and March silver is down $0.175 at $21.90.
As of 4:30 pm GMT, spot silver experienced a decrease of 0.17% and was trading at $21.96 per ounce. Platinum saw a rise of 0.64%, reaching a price of $950.60. On the other hand, Palladium saw a rise of 0.13% and was trading at $1,544.45.
March silver futures prices have reached their lowest level in 2.5 months today. The technical outlook for silver is evenly balanced between bulls and bears, but currently bears have the advantage. For silver bulls to gain an advantage, prices must close above the technical resistance level of $23.00. On the other hand, for the bears to gain momentum, prices must close below the support level of $21.00.
Investors and traders are eagerly awaiting the release of the January consumer price index (CPI) report on Tuesday, which is expected to show a year-on-year increase of 6.2%, down from the 6.5% rise in the December report. The U.S. producer price index report is set to be released on Thursday. Despite the expected decline in the CPI number, a close reading may still prompt the Federal Reserve to continue its monetary tightening policies for the next few months, which could partly explain why gold and silver investors are taking a wait-and-see approach today.
Overnight, global stock markets were mixed, with European shares mostly rising and Asian shares mostly declining. At midday, U.S. stock indexes are showing an upward trend.
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