Gold Rises Rs 50, Silver Plunges Rs 500 - HDFC Securities

New Delhi, May 31 (PTI) Gold prices gained Rs 50 to Rs 72,900 per 10 grams in the national capital on Friday in line with firm trends in the international markets, according to HDFC Securities.

The precious metal had closed at Rs 72,850 per 10 grams in the previous session.

However, silver prices plunged Rs 500 to Rs 95,500 per kg. It had settled at Rs 96,000 per kg on Thursday.

"Spot gold prices (24 carats) in the Delhi markets are trading at Rs 72,900 per 10 grams, up Rs 50 against the previous close," Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.

In the overseas markets, spot gold at Comex was trading at USD 2,341 per
ounce, up USD 2 from the previous close.

Gold rose slightly on Friday, aided by disappointing US first-quarter GDP data that suggested a downturn in the US economy, Gandhi said.

However, silver were quoting lower at USD 31.20 per ounce. In the previous session, it had finished at USD 31.65 per ounce.

"Gold prices have been stuck in a range so far in the week as the much awaited US Personal Consumption Expenditures (PCE) data will be released later in the day.

"A higher than expected reading would push the US dollar and bond yields higher and may trigger fresh selling in bullions, however, easing inflation would raise expectation of an early rate cut and boost risk assets and gold as well," Pranav Mer, VP - Research (Commodity & Currency) at BlinkX and JM Financial, said.

According to Jateen Trivedi, VP Research Analyst, Commodity and Currency at LKP Securities, said, "Gold prices saw uptick of around Rs 1,200 in MCX on weekly basis, reaching Rs 72,250, with Comex Gold finding support in the USD 2,320-2,330 range.
Overall, gold remains broadly positive, but near-term volatility is expected as the market awaits the US policy decision on June 12, which will provide clear direction for the gold prices, Trivedi added.