Gold, silver price on May 9: Precious metal prices stays weak in last session
Gold, silver price on May 9: Precious metal prices stays weak in last session
Gold prices on the MCX hovered at Rs 71,050 per 10 grams on Thursday, hitting an intraday low of Rs 71,034. In the international market, prices maintained a similar trend, hovering around $2,318.44 per ounce.
This indicates a certain level of stability in the gold market.
Meanwhile, silver hovered at Rs 83,119 per kg and hit an intraday low of Rs 83,100 on the MCX. In the international market, the price hovered around $27.58 per ounce.
Kaynat Chainwala, Senior manager of Commodity Research at Kotak Securities, said, “COMEX Gold prices remain weak but are holding above $2,300 per troy ounce as investors anticipate a Fed rate cut later this year. Fed Bank of Boston President Susan Collins emphasised the necessity for the US economy to cool down to reach the central bank’s 2% inflation target. Markets now show a 66% chance of a rate cut in September, according to the CME FedWatch Tool.”
Navneet Damani, Senior VP of Commodity Research at Motilal Oswal Financial Services, said, “Bullion saw little support from a recent decline in the dollar, as the greenback rebounded at the start of this week after several Fed officials said the central bank was more likely to keep rates unchanged in 2024.
“Safe haven appeal for gold increased this week as a conflict between Israel and Hamas worsened and ceasefire talks yielded little progress. Expectations of a September rate cut had risen after weak payroll data last week. But Kashkari and his peers said that sticky inflation still remained a key point of contention for the Fed, lowering the rate cut probability once again,” said Damani.
According to a WGC monthly report released yesterday, global gold ETFs saw their eleventh consecutive monthly outflow (-US$2.2bn) in April. For the day, BOE monetary policy, US weekly jobless claims and speeches from Fed officials will be in the spotlight.
Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said, “Gold prices exhibited volatility, experiencing a minor decline to 70900 in the morning session, while Comex gold weakened to $2303. However, Comex gold found support at $2305 and rallied to $2315. MCX gold also recovered above 71200. The week remained characterised by range-bound trading due to the absence of major data and sideways market patterns. Interest rate updates will likely influence prices in the near future. Currently, MCX gold is expected to trade within the range of 70000-72000.”
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