In India, a 10 g Sleep Price is in 24 carat 53,780, while available at 100 grams 5,37,800 Same as the previous day. Available in 22 carat 10g and 100g gold 49,300 more 4,93,000 respectively today.
According to good returns, the price of 24 carat gold is 54,160 in cities like Chennai, Coimbatore and Madurai. While gold is available at 53,780 in cities like Mumbai, Delhi, Kolkata, Bangalore, Hyderabad, Kerala, Vijayawada, Mangalore, Visakhapatnam and Mysore.
Gold is available – in cities like Pune, Vadodara, Patna, Nagpur and Nashik 53,840. while the price of the yellow metal is 53,830 in cities like Ahmedabad and Surat. Meanwhile, the price is 53,930 in cities like Jaipur, Lucknow and Chandigarh.
Whereas, 1 kg is available on silver. 67,100 down 300 from the previous day of 67,400. The cost of 10 grams and 100 grams of silver is 671 more 6,710.
The Indian yellow metal made a cautious movement tracking international spot gold, which was headed for its first weekly decline in three as bullion appealed on a rise in US Treasury yields and a stable dollar.
On MCX at around 2.32 pm, gold maturing on June 3 was trading on futures. 52435 up 22 or 0.04%. Bullion trades between the day’s high and low 52382 and 52662 respectively.
Silver futures fell on the exchange on May 5 634 or 0.94% and was trading at 66491. Silver traded between the day’s high and low. 66443 and 67256 respectively.
On Bullion Outlook today, Raj Deepak Singh, Saif Mukadam & Thirushankar CR, Research Analyst, ICICI Securities said, “MCX gold prices are expected to trade with negative bias for the day on aggressive monetary policy expectations by US Fed .MCX Gold price is likely to correct towards the 20-day EMA ( 52,125) for the day, below which, it can be pulled further down 51,600 levels in the coming days.”
Spot gold was currently trading at $1,941.76 an ounce, down 0.49%. US gold futures for June maturity saw volatility and were marginally lower near $1,944.
Bullion is sensitive to rises in US short-term interest rates and increases in bond yields because they push up the opportunity cost of holding non-yielding bullion. Comex gold fell 0.25% on Thursday amid sharp comments from Fed Chair Jerome Powell. The US dollar index advanced after the Fed chair raised interest rates by 50 basis points.
Further, analysts at ICICI Securities said, “Better than US jobless claims data impacted bullion prices. The number of Americans filing fresh claims for unemployment benefits declined from 186,000 to 184,000 for the week ended April 16.” , which was due to strong labor demand.”
Will tightening of monetary policy by major central banks make Indian gold cheaper?
The trio of ICICI Securities believes that Indian gold prices will touch down 50,000 till this month. He noted that concerns from market participants over the Russia-Ukraine turmoil led the Comex gold price to rise by 2.20% and hit a high of $2078/oz last month. In addition, concerns about increased inflation fueled demand for safe-haven assets.
However, ICICI Securities reported that gold prices again came under pressure in the second half after the US Federal Reserve raised its key benchmark interest rate by 0.25%, the first hike in the fed funds rate since 2018 to moderate higher inflation. Hui. Higher interest rates increased the opportunity cost of holding non-yielding bullion. Better-than-expected jobs data pushed the dollar index to a one-year high, making gold more expensive for holders of other currencies. The US unemployment rate returned to 3.60% in March 2022, up from 3.80% in the previous month.
CFTC data shows large net speculators reduced their net positions in Comex Gold from 274,400 contracts to 257,600 contracts in a matter of weeks, indicating bearish sentiment.
That said, analysts said, expect further correction in MCX gold prices 49,500 on the expectation that major central banks around the world will aggressively tighten their monetary policy to tackle high inflation. Besides, bullish sentiments in global markets may lead to slippage of gold.”
“Silver prices are expected to take cues from gold prices and move 64,000 level in this month,” the analysts said.