NEW DELHI, May 22: Gold prices fell Rs 50 to Rs 74,600 per 10 grams in the national capital on Wednesday amid fall in precious metal rates in overseas markets, according to HDFC Securities.
The yellow metal had closed at Rs 74,650 per 10 grams in the previous session.
However, silver prices jumped Rs 600 to Rs 95,100 per kg. It had settled at Rs 94,500 per kg in the previous session.
In the global markets, spot gold at Comex was trading at USD 2,417 per ounce, down USD 3 from the previous close.
“Gold fell further on Wednesday as investors evaluated recent statements from the US Federal Reserve officials that downplayed the timing of interest rate cuts.
“Traders are now closely monitoring US Fed’s Federal Open Market Committee (FOMC) meeting minutes to be release later on Wednesday, as they could offer fresh perspectives on the US central bank’s monetary policy trajectory,” Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.
However, silver was trading higher at USD 31.75 per ounce. In the previous session, it had ended at USD 31.60 per ounce.
Meanwhile, in the futures trade on the Multi Commodity Exchange (MCX), gold declined Rs 171 to trade at Rs 73,850 per 10 grams. The most traded June contract hit an intra-day low of Rs 73,742 per 10 grams at 1630 hrs.
Further, silver contracts for July delivery were also trading lower by Rs 256, or 0.27 per cent, to Rs 94,469 per kg on the bourse.
“Gold has experienced minor profit booking since yesterday night as the initial geopolitical tensions from Iran President’s helicopter crash have faded. The market’s focus has now shifted back to interest rate cut predictions, which are expected in September.
“In India, gold is quoted lower, with major resistance at Rs 74,500 for the time being. Minor profit booking may continue, potentially bringing prices down towards Rs 73,000,” Jateen Trivedi, VP Research Analyst of Commodity and Currency at LKP Securities, said.
According to Praveen Singh, Associate VP, Fundamental Currencies and Commodities at Sharekhan by BNP Paribas, said, “Crucial US macro data including, US existing home sales (April) and the UK’s CPI (April) data will also be in focus.
“Gold is expected to range trade ahead of the FOMC minutes. Support is at USD 2,400-2,380, whereas resistance is at USD 2,450-2,475 level. The metal may reach USD 2,500 level in the short term.” (PTI)
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