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Business News/ Markets / Commodities/  Gold, silver prices today: Rates fall on low demand

Amid a reduction in demand among gold investors, prices of the yellow metal fell by 427 to 59,771 per 10 grams in futures trade on Thursday.

On the Multi Commodity Exchange, gold contracts for August delivery traded lower by 427 or 0.71 per cent at 59,771 per 10 grams in a business turnover of 15,003 lots. One of the main reasons behind the fall in gold prices was the trimming of positions by participants. At global markets, gold was trading 0.42 per cent lower at USD 1,973.80 per ounce in New York.

The last day was marked by stronger demand for gold due to positive global trends. Gold prices rose by 455 to 60,400 per 10 grams in Delhi on Wednesday. Just like gold, silver also rose by 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, on Wednesday.

In contrast to yesterday's trade, Silver futures on Thursday dropped by 766 to 71,336 per kilogram as participants continued to reduce their investment. On the Multi Commodity Exchange, silver contracts for July delivery were reduced by 766 or 1.06 per cent to 71,336 per kg in a business turnover of 13,686 lots. At the Global level, silver was trading 0.69 per cent lower at $ 23.43 per ounce in New York.

Expert comment on gold price

The recent fall in the gold, silver price is the result of fall in risk appetite, believe experts. The mood of investors is also likely to improve on Fedspeak and China's data.

“Gold is expected to trade between $1930 and $1990," predicts Praveen Singh, Associate VP Fundamental currencies and Commodities at Sharekhan by BNP Paribas.

“Yesterday, US JOLTs job openings unexpectedly rose, thus increasing the odds of a rate hike in June; however, two of the Federal Reserve speakers called for a possibility of a rate hike skip in June so as to assess the impact of steep rate hikes done so far. Surging US Dollar fell on this development. China's Caixin manufacturing PMI data released this morning showed that the Chinese manufacturing expanded for the first time in three months, thus beating the forecast of a contraction in May. Risk appetite is expected to improve on Fedspeak and China's data, which may support commodities in general. Today's US data include US ISM manufacturing, weekly jobless claims and ADP -- a precursor of Friday's NFP data," he added.

Gold, Silver prices opened on a dull note on Thursday

Notably, gold rate saw a vast sell off in early morning deals on Multi commodity Exchange (MCX) on Thursday. The precious metal opened lower at 60,057 per 10 gm levels and tumbled to an intraday low of 59,834 per 10 gm levels within minutes of commodity market opening. Showing a similar trend, gold price continued to oscillate around $1,964 per ounce levels in the Asian stock market.

On the other hand, Silver rate traded under pressure in the early morning sessions. The white metal opened lower at 71,857 per kg levels and hit intraday low of 71,711 on MCX. In the international market, silver price today is around $23.50 per ounce.

Fall in the gold, silver price is the result of an early approval of the US debt ceiling resolution by the US House of Representatives. The resolution was announced five days prior to the deadline.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.

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Updated: 01 Jun 2023, 04:10 PM IST
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