- Silver oscillates on the MCX, hitting a low of Rs 69,250 before hovering around $22.56 per troy ounce internationally.
- Gold remains stuck between $2,000 and $2,050 an ounce as the specter of long-term interest rates in the United States plays a spoilsport role.
- Analysts at UBS remain optimistic and predict that gold will improve its shine to $2,250 an ounce by the end of 2024.
In the bustling world of commodities, gold and silver maintained interest, albeit within a predictable range, during the Asian trading session on Tuesday. Gold sailed comfortably within its now familiar neighborhood of $2,000 to $2,050 per ounce, while silver embarked on a slight detour, opening at an eye-catching price of Rs 69,659 per kg on the MCX. It fell to Rs 69,250 before settling around the $22.56 mark in the international market.
Gold rises despite dollar strength
The narrative around gold thickened as the precious metal saw its potential rally slowed by the looming presence of the US Federal Reserve's higher-for-longer interest rate stance. This sentiment was supported by several Federal Reserve officials, who suggested a cautious approach to policy easing, given the persistent nature of inflation. Meanwhile, the dollar showed its strength, settling near three-month highs, adding an extra layer of intrigue.
Despite these obstacles, gold managed a modest rise. Spot gold rose 0.1% to $2,033.36 an ounce and futures rose 0.2% to $2,042.60. The opportunity cost dilemma further complicates the narrative of this unprofitable asset, as higher interest rates make other investments more attractive by comparison.
Silver linings and copper hopes
Not to be overshadowed, other precious metals also danced within their ranges. Platinum and silver futures found a sign of recovery. The former rose 0.5% to $887.85. The latter cautiously advanced 0.1% to $22.758 an ounce. Copper, the industrial metal, entered the scene. It rose 0.4% to $3.8510 per pound. This metal is eagerly awaiting key data from China, its largest market.
Looking ahead, UBS analysts offer a hint of optimism about gold. They project a bright future with a forecast of $2,250 per ounce at the end of 2024. They advocate gold as a versatile asset. It's a dazzling adornment, a smart investment, and a hedge against market volatility.
As the commodity market continues its orchestrated moves, precious metals hold occasional surprises. These surprises ensure that investors remain interested. They eagerly await the next act in this financial saga.
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