Gold, silver price on May 31: Precious metals trade higher on 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 ₹4 or 0.01 per cent at ₹59,950, having swung between ₹59,840 and ₹60,017 during the session so far,
Gold prices jumped by ₹455 to ₹60,400 per 10 grams in the national capital on Wednesday amid strong global trends, according to HDFC Securities. In the previous trade, the precious metal had finished at ₹59,945 per 10 grams. Silver also climbed ₹500 to ₹72,750 per kg. In the overseas markets, both gold and silver were trading higher at $1,958 per ounce and S23.23 per ounce, respectively.
On the Multi Commodity Exchange (MCX), gold futures due for a June 5 delivery, were last seen trading higher by ₹4 or 0.01 per cent at ₹59,950, having swung between ₹59,840 and ₹60,017 during the session so far, compared to their previous close of ₹59,946. Silver futures for a July 5 delivery were last up 0.45 per cent at ₹71,360
Domestic spot gold opened at ₹60,435 per 10 grams on Wednesday, and silver at ₹71,076 per kilogram - both rates excluding GST, according to Mumbai-based industry body India Bullion and Jewellers Association (IBJA).
In the international markets, gold prices slipped to head for their first monthly decline in three as the US dollar climbed on expectations the Federal Reserve would keep interest rates higher for longer than previously thought.
Global shares fell ahead of a vote in Washington on the US debt ceiling, while the US dollar hit a more than two-month high after data showed China's recovery is stalling. Interest rate hikes remain a headwind for gold since that translates into higher opportunity cost of holding non-yielding bullion.
Also Read: RBI's gold holding rises 17% to Rs2,30,734 crore on high gold prices, rupee depreciation
What analysts say:
"Gold will probably remain at its current level over the next few days as safe haven demand related to uncertainty about the debt ceiling persists," said Edward Gardner, commodities economist at Capital Economics told news agency Reuters.
In the near term, gold faces headwinds from a stronger dollar and expectations the Fed's interest rates will keep rising, Gardner added.
‘’Gold prices edged higher in Asian trading hours on Wednesday as US bond yields retreated from the recent peak which is supportive for the metal, said Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities.
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