As per an ET report by Nishtha Awasthi, MCX June gold futures rose by Rs 36 to reach Rs 71,065 per 10 grams on Wednesday.At the same time, MCX May silver futures increased by Rs 172, or 0.21%, to Rs 80,850 per kilogram.
Due to safe-haven buying amid the conflict between Iran and Israel, gold prices surged to an all-time high of Rs 73,958 on April 12.
The June gold futures closed almost flat at Rs 71,014 per 10 grams on Tuesday, down by 0.02%, while the May silver futures settled at Rs 80,657 per kilogram, also losing 0.02%.
Suvankar Sen, MD & CEO of Senco Gold & Diamonds, noted that with Akshaya Tritiya approaching, many consumers consider it an ideal time to buy gold. He also emphasized that global uncertainties remain, including the conflict between Israel and Hamas, the war between Russia and Ukraine, and ongoing geopolitical tensions in Southeast Asia and China. If these situations worsen, they could push gold prices higher.
“I think this is more of a profit booking for which the prices have come down,” he added.
Sen further stated that consumers need to understand that political risks and tensions aren’t going away. Also, if US unemployment reports turn negative, there might be interest rate cuts. I think people have noticed this and are buying jewelry, worried that gold prices might rise again.
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Gold prices drop: What does this mean for investors?
Gold prices dropped slightly on Wednesday as concerns about the Middle East conflict decreased. Meanwhile, investors awaited key US economic data, which could provide insights into when interest rates might be cut.
In the US markets, spot gold fell by 0.1% to $2,320.19 per ounce at 0115 GMT. This was the lowest price since April 5, following a rally from March to April that pushed it up by nearly $400, reaching an all-time high of $2,431.29 on April 12.
US gold futures dropped by 0.4% to $2,333.80 per ounce. The market is now waiting for the March personal consumption expenditure (PCE) data—considered the Federal Reserve’s preferred measure of inflation—which is expected later this week. This data could provide more clarity on the future direction of monetary policy.
Today, the US Dollar Index (DXY) dipped below 106, reaching 105.67, down by 0.01 points or 0.01%.
International and domestic silver prices remained stable during Tuesday’s session.
Sriram Iyer, Senior Research Analyst at Reliance Securities was quoted as saying, “From an intraday perspective, international gold prices have started marginally in the red this early Wednesday morning in Asian trade as traders look to data for cues on the monetary policy outlook from the Fed.”
The expected range for MCX gold in June is between Rs 70,400 and Rs 71,400, while for MCX silver in May, it’s between Rs 81,400 and Rs 82,900, said Iyer.