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Gold Tumbles Rs 350, Silver Retreats From Record Highs - News

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By Rediff Money Desk, New Delhi   May 30, 2024 19:01

Gold prices fell Rs 350 to Rs 72,850 per 10 grams, while silver retreated from record highs in the national capital on Thursday, amid weak global trends. The decline was attributed to hawkish comments from Fed officials on US interest rates and a recovery in US Treasury yields.
Gold Tumbles Rs 350, Silver Retreats From Record Highs - News
New Delhi, May 30 (PTI) Gold prices declined Rs 350 to Rs 72,850 per 10 grams while silver prices retreated from record highs in the national capital amid weak trends in the global markets on Thursday.

According to HDFC Securities, silver prices tumbled Rs 1,100 to Rs 96,000 per kg. It had closed at Rs 97,100 per kg on Wednesday.

Meanwhile, gold prices fell Rs 350 to Rs 72,850 per 10 grams. In the previous session, it had settled at Rs 73,200 per 10 grams.

"Gold declined on Thursday as investors assessed the recent hawkish comments from Fed officials on US interest rates. Aggressive remarks have dampened expectations for a potential Fed pivot.

"The recovery in US Treasury yields, which reached a four-week high in the previous session, also had a negative impact on precious metals prices," Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities.

In the international markets, spot gold at Comex was trading at USD 2,339 per ounce, down USD 13 from the previous close.

"Gold prices faced strong resistance in the range of USD 2,340-2,350 in Comex.

"Indications of 'higher for longer' interest rates boosted the dollar, which put pressure on gold prices and leading to profit booking and increased volatility.

"The upcoming PCE price index release on Friday is expected to be a key trigger for price movements, as inflation remains a significant concern," Jateen Trivedi, VP Research Analyst -- Commodity and Currency at LKP Securities, said.

In addition, silver also traded lower at USD 31.65 per ounce.

"Commodities basket as a whole is trading in the negative territory, weighed by a stronger US dollar as traders prefer to stay in lighter positions ahead of the US GDP data later in the day and inflation numbers from Euro zone and US tomorrow, which may give some clues on the timing rate cuts of the respective central banks.

"The market has been pricing in a rate from the European Central Bank next month, while the US Fed is expected to keep delaying the rate cuts," Pranav Mer, Vice President, EBG, Commodity & Currency Research at JM Financial Services Ltd, said.
Source: PTI
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