Gold rates today: Futures were slightly higher at  ₹50925 per 10 gram (AFP)

Gold prices are struggling in Indian markets today, falling by 5,000 ₹ in 2 months


Today, gold prices sought direction due to weak global stimuli. Although US dollar and US bond yields have withdrawn from recent highs, the recovery in global stocks is weighing on demand for this precious metal in a safe haven, analysts say. On the MCX, gold futures were slightly higher at 50925 per 10 grams, while silver increased by 0.4%. 62,080 per kg. Gold reached a high in March 55,600 in the middle of the Ukrainian crisis and has been fighting ever since.

“While the price of gold is now just above its 200-day moving average at $ 1,839 and is trading close to $ 1,850, although still declining slightly, despite Thursday’s worse-than-expected US GDP and Wednesday is no longer as hawkish as feared Fed release minutes. As a result of weak data and a slight reduction in the Hawks’ bets, the US dollar is slightly weaker and US yields are falling, a combination that would normally be a butt for gold and silver, ”said Rahul Kalantri, vice president. Commodities, Mehta Equities Ltd.

“But US stocks are rising and this seems to be a safe haven for precious metals. Weekly unemployment claims in the United States fell by 8,000 to 210,000, down from the previous week’s unrevised estimate of 218,000. Metals showed no significant or sustained response to the weaker-than-expected first quarter revision of the US GPD, which fell 1.5% year on year.

In global markets, gold rates rose 0.2% to $ 1,854 and the precious metal is on its way to a second weekly rise as the dollar continues to weaken. The dollar index fell on the way by the second weekly decline in a row, which made gold cheaper for buyers holding other currencies.

The minutes of the Fed’s political meeting on May 3-4, highlighted on Wednesday, highlighted how the market expected most participants to prefer a further rate increase of 50 basis points at the June and July meetings.

Higher short-term US interest rates and bond yields increase the opportunity costs of holding precious metals that do not yield anything.

Among other precious metals, spot silver fell 0.2% to $ 21.95 an ounce, and so far this week has gained about 1.5%.

“COMEX gold is trading slightly higher at around $ 1852 / oz, supported by the weakening US dollar and lower bond yields. The US dollar index fell by almost one month after the FOMC minutes due to some unsatisfactory economic data in the US, reduced demand for safe harbors and a growing debate about the Fed’s monetary position. The FOMC minutes reaffirmed that the central bank will continue to raise interest rates, but market players are considering the possibility that the Fed may slow if economic growth is affected, “said Ravindra Rao, head of commodity research at Kotak Securities.

“Weighing the price of gold is an attempt by the stock markets to recover, as the Fed’s monetary policy stance is being discussed. ETF flows also show a cautious attitude on the part of investors. Gold has recovered from a 2-week high set earlier this week, but is consolidating in the range of close to $ 1,850 / oz, and the trend may continue unless new triggers are released, but tightening expectations may keep prices under pressure. “

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