Gold futures opened at Rs.56875.00 per 10 grams, on the Multi Commodity Exchange (MCX). This is a -0.15% change from yesterday's opening.
Silver futures, on the other hand, opened at Rs. 68,331.00 per kilogram on the MCX commodity exchange. This is a 0.50% increase from yesterday’s opening. Most analysts are bullish on both commodities for 2023, owing to multiple domestic and international factors, including the geopolitical situation and the decline in the value of the dollar.
The gold market is off to a strong start in 2023, with prices nearing a nine-month high after a five-week rally. Despite this positive trend, some analysts are questioning the sustainability of the rally due to a lack of investor participation. Despite a 5% increase in gold prices this year, data from SPDR Gold Shares (NYSE: GLD), the world's largest gold-backed ETF, shows that demand for the ETF is still falling.
Gold decreased slightly following the release of robust U.S. economic data. The possibility of a slowdown in the economy helped to mitigate declines in the safe-haven asset. Gold spot prices stabilized to $1,927.33 per ounce at 4:52 p.m GMT.
On Saturday, the price of spot silver was static at $23.56 per ounce. Other precious metals also saw a dip, with platinum uprising to $ 1,012.08 and palladium to $ 1618.86.
The U.S. economy continued to show signs of recovery, with GDP growing at an annualized rate of 4% in the fourth quarter of 2022, according to the Commerce Department. This was a positive sign for investors, as it suggests that the economy is bouncing back from the pandemic-induced recession.
In Europe, the Stoxx Europe 600 index closed up 1.5%, with Germany's DAX and France's CAC 40 both closing higher.
The European Central Bank also left interest rates unchanged, as expected, and maintained its bond-buying program, which helped to boost sentiment in the markets. In the commodity market, gold prices fell as the U.S. dollar strengthened, while oil prices rose on the back of strong demand and supply concerns.