Gold, silver price on May 6: Yellow metal sees a dip. Here's what's causing it
Gold, silver price on May 6: Yellow metal sees a dip. Here’s what’s causing it
Gold prices at the MCX on Monday hovered at Rs 71,141 per 10 grams, hitting an intraday low of Rs 70,849. In the international market, prices hovered around $2,318.47 per ounce.
Meanwhile, silver hovered at Rs 81,750 per kg, hitting an intraday low of Rs 81,603 on the MCX. In the international market, the price hovered around $27.10 per ounce.
Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “Gold prices last week traded in a range as market participants were cautious ahead of the Fed monetary policy meeting and US jobs market data. Federal Reserve in the previous week kept interest rate steady and raised concerns regarding sticky inflation; Governor Powell did mention that any sign of an ease off in the labour market could lead to a rate cut. Terms like higher for longer and data dependent were intact in Fed Governor’s comments.”
The US central bank did announce that from June they will look to ease off the pace of balance sheet runoff. US job growth slowed more than expected in April, reinforcing expectations that Fed will start cutting interest rates later this year.
US non-farm reported job addition of 175k against expectations of 238k; unemployment rate was also marked at 3.9%.
“Markets are now pricing more than 50% chance of US rate cut in September. NY Fed President Williams said 2% target for inflation is “critical” to Fed’s efforts to achieve price stability. Amidst these updates, Dollar index fell from ~105.80 to 105 mark, US 10Y Yield also fell from 4.6% to around 4.5% zone. Focus today will be on Services PMI from major economies,” said Modi.
Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said, “Gold prices experienced a decline from the higher levels of 71200 to 70600, driven by profit booking opportunities following a gap up opening. Market uncertainty surrounding the interest rate cycle and potential cuts ahead contributed to the downward pressure on gold prices. The Dollar index found support after the Federal Open Market Committee (FOMC) statement hinted at interest rates being held higher for a longer duration, prompting profit booking in bullions. Investors are now awaiting the Non-farm Payrolls and unemployment data, which are expected to provide further insights into the direction of bullion prices.”
Watch Live TV in English
Watch Live TV in Hindi