On the Multi Commodity Exchange (MCX), gold futures began trading at Rs. 56255.00 per 10 grams, showing a slight rise of 0.05%. On the other hand, silver futures opened at Rs. 65600.00 per kilogram, with a slight decrease of 0.05%.
As of 3:24 pm GMT, spot silver experienced a decrease of 0.01% and was trading at $21.72 per ounce. Platinum reached a price of $916.60. On the other hand, Palladium was trading at $1,498.29.
Commodity market experts have attributed the strengthening of the US dollar against major global currencies to concerns over a potential US Fed rate hike and a series of strong economic data from the US. They have explained that the recent rise in the dollar index, which had fallen below the 103 mark, should be viewed in this context. As a result, the increase in US dollar rates has impeded the upward momentum of gold prices.
According to market expert Sugandha Sachdeva, there are several factors that have hindered the rally of gold prices. These include concerns about the US Federal Reserve implementing tighter policies for an extended period of time and a series of robust economic data from the US. This has resulted in a drop in gold prices to a five-week low in domestic markets. One such data point is the 3% increase in US retail sales in January, exceeding the expected 1.8% and indicating strong consumer spending. Additionally, monthly US producer prices increased the most in seven months in January, suggesting a rebound in US wholesale-level inflation.