Gold Price Today: Yellow metal dips by Rs 3,500 from all-time high, silver down by Rs 3,300 in June

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Gold August Futures on MCX fell by Rs 3,300 to Rs 71,258 per 10 grams from its peak of Rs 74,777 per 10 grams on May 20 while silver July contracts have dipped by Rs 3,300 so far in June so far to Rs 88,271/kg.

Gold and silver dipped amid a rebound in the dollar index and hawkish Fed comments on rate cuts. The overall trend remained volatile. On Thursday, gold and silver settled on a weaker note in the domestic markets.

Although gold dropped from last month’s peak, it’s still up about 12% this year due to safe-haven demand and purchases by central banks and Chinese consumers.

US producer prices fell unexpectedly in May, suggesting easing inflation, while unemployment claims rose. Despite these signs, the Federal Reserve indicated it expects only one rate cut this year, wanting more proof of cooling inflation.

On Thursday, MCX gold August futures contracts settled at Rs 71,138 per 10 grams with a loss of 1.16%, and silver July futures contracts settled at Rs 87,983 per kilogram with a loss of 3.72%. Today, the US Dollar Index, DXY, was hovering near the 105.23 mark, rising 0.03 or 0.02%.“The U.S. CPI inflation eases in May and the U.S. PPI data released on Thursday also indicates that the inflation is easing in the U.S. but the U.S. Fed remains hawkish and surprised markets. However, the U.S jobless claims surged once again in the last week to 2,42,000 against expected claims of 2,25,000 and could support gold and silver prices at lower levels,” said Manoj Kumar Jain of Prithvi Finmart Commodity Research.Ranges for gold and silver by Manoj Kumar Jain:

  • At MCX, gold has support at 70,850-70,600 and resistance at 71,330-71,550.
  • Silver has support at 87,200-86,300 and resistance at 88,650-89,400.

We suggest buying gold on dips around 70,850 with a stop loss of 70,600 for the target of 71,300.

(Disclaimer: The views expressed by experts are their own and do not necessarily reflect those of The Economic Times)

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