Gold prices fell on May 16 from 220 Speculators reduced their positions, which traded at Rs 60,807 per 10 grams in futures trade. In gold contracts for June delivery on the Multi Commodity Exchange 220 or at 0.36 percent There was a business turnover of 12,441 lots at 60,807 per 10 grams.
Analysts attributed the fall in gold prices to off-loading of positions by traders. open on domestic spot gold On Tuesday, silver at 61,079 per 10 grams, silver 72,015 per kg – both rates excluding GST, according to Mumbai-based industry body India Bullion and Jewelers Association (IBJA).
Globally, gold was trading 0.50 per cent lower at $2,012.50 an ounce in New York. Spot gold was down 0.5 per cent at $2,009.89 an ounce, while US gold futures fell 0.4 per cent to $2,014.20.
Craig Erlam, a senior market analyst at OANDA, said, “(gold) has a strong element of weariness in the trade … We need to see more signs of a pivot from the Federal Reserve and we really haven’t seen that fully yet.” Is.” told news agency Reuters.
After several Fed policymakers indicated on Monday that they see interest rates remaining high, Richmond Fed President Thomas Barkin said he is not convinced that inflation is on a sustained decline at the US central bank’s 2 percent target.
High interest rates reduce the appeal of non-yielding bullion, even though gold is considered a hedge against inflation and economic uncertainties. The US Treasury Department said it still expects to be able to pay the US government’s bills only through June 1 without a debt-limit increase.
Meanwhile, the rupee saw gains for the first time in four sessions on Tuesday as a slightly weaker dollar and improving economic data supported the local currency. The rupee closed at 82.2050 against the US dollar as against 82.2950 in the previous session. The rupee had hit a six-week low of 82.3725 on May 16.
The dollar halted its recent rally and slipped from a five-week high on Tuesday amid weak US economic data and concerns over the country’s debt ceiling.
LKP Securities analyst Jatin Trivedi said the rupee’s movement is mostly linked to global concerns like US debt ceiling, which is impacting the dollar index. He said that the rupee is expected to trade broadly in the range of 81.80-82.40 levels.
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