- Silver is on a roll on the MCX exchange, hitting a low of Rs 69,250 before trading at around $22.56 per ounce globally.
- Gold is still confined to a range between $2,000 and $2,050 per ounce, with the specter of continued US interest rates spoiling it.
- UBS analysts remain optimistic, expecting gold to strengthen to $2,250 an ounce by the end of 2024.
In the noisy world of commodities, gold and silver maintained interest, albeit within a predictable range during the Asian trading session on Tuesday. Gold moved comfortably within the now familiar $2,000 to $2,050 per ounce zone, while silver embarked on a slight turn, opening at an eye-catching price of Rs 69,659 per kg on the MCX exchange. It fell to Rs 69,250 before settling around the $22.56 mark in the international market.
Gold rises despite the strength of the dollar
Talk about gold intensified as the precious metal found its potential rise capped by the looming presence of a longer-term higher interest rate stance by the US Federal Reserve. This sentiment was supported by many Federal Reserve officials, who suggested a cautious approach to easing policy, given the persistent nature of inflation. Meanwhile, the dollar showed strength, hovering near three-month highs, adding an extra layer of intrigue.
Despite these headwinds, gold posted a modest increase. The spot price of gold rose 0.1 percent to $2,033.36 per ounce, and futures contracts rose 0.2 percent to $2,042.60. The opportunity cost dilemma further complicates the narrative surrounding this non-yielding asset, as higher interest rates make other investments more attractive by comparison.
Silver linings and copper hopes
Not to be overlooked, other precious metals have 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 per ounce. Copper, an industrial metal, entered the scene. It saw an increase of 0.4% to reach $3.8510 per pound. This metal is eagerly awaiting key data from China, its largest market.
Looking ahead, UBS analysts are very optimistic about gold. They predict a bright future with a forecast of $2,250 per ounce by the end of 2024. They defend gold as a versatile asset. They are a stunning decoration, a wise investment, and a hedge against market fluctuations.
As the commodity market continues its coordinated movements, precious metals provide surprises from time to time. These surprises ensure that investors stay engaged. They are eagerly awaiting the next chapter in this financial saga.
