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Business News/ Markets / Commodities/  Gold, silver price on May 30: Precious metals trade mixed on weak global cues; check rates here

Gold, silver price on May 30: Precious metals trade mixed on weak global cues; check rates here

On the Multi Commodity Exchange (MCX), gold futures due for a June 5 delivery, were last seen trading higher by ₹401 or 0.67 per cent at ₹59,820, having swung between ₹59,225 and ₹59,820 during the session so far

Gold prices in India have inched closer to  ₹60,000 per gramPremium
Gold prices in India have inched closer to 60,000 per gram

Gold price eased by 90 to 59,945 per 10 gram in the national capital on May 30 amid weak global trends, according to HDFC Securities. In the previous trade, the precious metal had closed at 60,035 per 10 gram. Silver also went lower by 350 to 72,250 per kilogram. In the overseas markets, both gold and silver were quoting lower at $1,939 per ounce and $23.05 per ounce, respectively.

On the Multi Commodity Exchange (MCX), gold futures due for a June 5 delivery, were last seen trading higher by 401 or 0.67 per cent at 59,820, having swung between 59,225 and 59,820 during the session so far, compared to their previous close of 59,419. Silver futures for a July 5 delivery were last up 0.18 per cent at 71,256.

Domestic spot gold opened at 59,981 per 10 grams on Tuesday, and silver at 70,323 per kilogram - both rates excluding GST, according to Mumbai-based industry body India Bullion and Jewellers Association (IBJA).

In the international markets, gold prices bounced back from their lowest level in more than two months on Tuesday as the dollar backtracked from highs, while lingering concerns over US debt ceiling negotiations has kept investors on edge and rekindled demand for safe-haven bullion. The dollar eased 0.2 per cent from its 10-week highs, making bullion cheaper for holders of other currencies.

Gold tends to lose its appeal in a high-interest rate environment. US President Joe Biden said on Monday he felt good about the prospects for passage by Congress of the debt ceiling deal, yet a handful of hard-right Republican lawmakers said they would oppose a deal, highlighting risks before the limit is reached in a few days. Markets are now pricing in a 59.4 per cent chance of the US Fed raising rates at its June 13-14 meeting.

What analysts say:

"The dollar is turning around, thereby supporting gold which was already attracting bids after managing to hold support around $1,933," said Ole Hansen, head of commodity strategy at Saxo Bank. Hansen noted that while earlier worries on the US debt ceiling deal had supported prices, the repricing of the Fed's rate hike path was keeping gold pressured.

"We have seen ETF holdings utilizing this recent setback (in prices) to add length to the position and that tells me that the short-term outlook is challenged, but the longer-term outlook remains supportive," Hansen added. 

"While the Fed may be slow to cut rates as inflation remains a concern, a deteriorating economy will ultimately see rate cuts and that could remove support for the dollar and help to lift the gold price," Heraeus analysts said in a note.

‘’Gold prices edged lower in Asian trading hours on Tuesday on high chances of the US debt-ceiling deal being sealed, softer dollar and reduced safe haven demand, said Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities.

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Updated: 30 May 2023, 05:18 PM IST
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