Today’s Gold Prices: Decline of Rs 7,900 per 10 Grams
Gold and silver prices experienced a notable decline in both domestic and international markets on Wednesday. Gold June futures at the Multi Commodity Exchange (MCX) fell significantly by Rs 7,900 from their peak, reaching an intraday low of Rs 91,461 per 10 grams. This drop reflects a broader trend influenced by ongoing trade negotiations between the U.S. and China, which have led investors to secure profits and reduce their long positions in precious metals.
Market Trends and Price Movements
On Thursday, gold June futures settled at Rs 92,265 per 10 grams, marking a decrease of 1.48%. Similarly, silver July futures ended at Rs 95,466 per kilogram, down by 1.34%. The decline in prices is attributed to a reduction in safe-haven demand, as traders reacted to the evolving U.S.-China trade discussions. The sentiment in the bullion markets shifted, prompting many to close their positions and take profits. The ongoing uncertainty in global financial markets has further contributed to the risk aversion among investors, leading to a decrease in demand for these precious metals.
Influencing Factors
Several factors have influenced the recent downturn in gold and silver prices. The easing of U.S. Consumer Price Index (CPI) inflation in April has diminished expectations for Federal Reserve rate cuts in the upcoming June policy meetings. Manoj Kumar Jain from Prithvifinmart Commodity Research noted that the surge in U.S. 10-year bond yields, which have surpassed 4.50%, has also placed downward pressure on precious metal prices. Despite this, the declining dollar index and uncertainties surrounding long-term international trade agreements with the U.S. may provide some support for metal valuations at lower levels.
Future Outlook and Recommendations
Looking ahead, experts anticipate continued volatility in gold and silver prices, particularly in light of fluctuations in the dollar index and the release of key global economic data. Jain indicated that gold prices could maintain a crucial support level around $3,140 per troy ounce, while silver prices might hold at $31.40 per troy ounce. He outlined specific price ranges for traders: gold support is expected between Rs 91,770 and Rs 91,360, with resistance at Rs 92,650 to Rs 93,100. For silver, support is projected at Rs 94,800 to Rs 94,200, and resistance at Rs 96,000 to Rs 96,650. Jain advised against initiating new positions in precious metals during the current trading session, given the anticipated release of significant global economic data.
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