As anticipation that the US Federal Reserve may raise interest rates later this year were strengthened by a steady dollar and better-than-expected US inflation figures, gold prices fell 1.36 percent over the week.
MCX silver May futures lost 0.94 percent on Friday, while MCX gold June futures down 0.59 percent. At the moment, silver futures are valued at Rs 2,67,000 per kilogram, while gold futures are valued at Rs 1,56,000.
According to data released by the India Bullion and Jewellers Association (IBJA), the price of 10 grams of 24-carat gold dropped from Rs 1,58,622 at Monday’s market opening to Rs 1,56,463 on Friday.
While US personal consumption expenditures (PCE) increased 3.8% (year-over-year) in April, the quickest since May 2023, the dollar index increased by around 0.10%, supporting predictions of US Fed rate rises this year.
Although positive momentum is still strongly correlated with expectations for US monetary policy, bond yields, and the direction of the US dollar, gold and silver continue to draw selective safe-haven and value-oriented buying near important technical levels, according to an expert.
As investors move toward yield-bearing assets, rising energy prices exacerbate inflationary pressure and raise the possibility of Fed tightening, which reduces the appeal of gold.
According to the minutes of a recent US Fed meeting, more policymakers are now willing to consider the idea that rates may need to be raised.
He continued, “COMEX Gold is currently trading in the $4,570–$4,600 range, with weekly price action continuing to reflect a consolidation phase and a cautious undertone.”
According to market participants, the $4,400–$4,350 range is still a crucial support area, while the $4,600–$4,650 zone is technically considered imminent opposition.
The Rs 1,60,000 to Rs 1,62,000 area is the immediate resistance for MCX Gold, while the Rs 1,54,000 to Rs 1,52,000 zone remains a crucial support base.
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