Gold prices on MCX for June futures contracts rose by Rs 36 to trade at Rs 71,065 per 10 grams on Wednesday while MCX May silver contracts were up by Rs 172 or 0.21% to Rs 80,850 per kg.
Safe-haven buying amid conflict between Iran and Israel had made gold prices rise to their lifetime high at Rs 73,958 on 12th April.
On Tuesday, the gold June futures =settled on a flat note at Rs 71,014 per 10 grams with a loss of 0.02% and the silver May futures contract settled Rs 21 or 0.02% down at Rs 80,657 per kilogram.
“Akshyay Tritiya is around the corner, so consumers are thinking that this is a great opportunity to buy and more importantly I think that the global uncertainties continued to remain, the war between Israel & Hamas, or Russia, Ukraine, or even the way the other geo-political tensions in SouthEast Asia, & China side it continues to remain so that any bad news will make the gold price jump again,” says Suvankar Sen, MD & CEO, Senco Gold & Diamonds.
“I think this is more of a profit booking for which the prices have come down” adds Sen. “Consumers also need to realise that the risks and workable political tensions do not go away. Plus, if the US reports start coming negative with regards to unemployment, the interest rate reduction will also be on the cards. So, I think consumers have realised that and are coming and trying to buy jewellery, fearing that gold prices will go up again.”Gold prices edged lower on Wednesday, as fears of an escalation in the Middle East conflict eased, while investors waited for crucial U.S. economic data that could shed more light on the timing of interest rate cuts.
In the U.S. markets, spot gold was down 0.1% at $2,320.19 per ounce, as of 0115 GMT, having hit its lowest since April 5 in the previous session. Bullion’s March to April rally drove it up by nearly $400 to an all-time high of $2,431.29 on April 12.
U.S. gold futures were down 0.4% at $2,333.80 per ounce and the markets are awaiting the March personal consumption expenditure (PCE) data – the Fed’s preferred inflation gauge – later this week to further ascertain the trajectory of monetary policy.
Today, the US Dollar Index, DXY, was below the 106 mark at Rs 105.67, losing 0.01 or 0.01%.
International and domestic silver prices also steadied in Tuesday’s session.
“From an intraday perspective, international gold prices have started marginally in the red this early Wednesday morning in Asian trade as traders look to data for cues on the monetary policy outlook from the Fed,” said Sriram Iyer, Senior Research Analyst at Reliance Securities.
“The range for MCX gold June is 70,400 to 71,400, while that for MCX silver May is 81,400 to 82,900,” added Iyer.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)