Gold, silver price on May 23: Precious metal prices retreat from their record highs
Gold, silver price on May 23: Precious metal prices retreat from their record highs
Gold prices on the MCX hovered at Rs 72,681 per 10 grams on Wednesday, hitting an intraday low of Rs 72,111. In the international market, prices maintained a similar trend, hovering around $2,368.16 per ounce.
This indicates a certain level of stability in the gold market.
Meanwhile, silver hovered at Rs 92,840 per kg and hit an intraday low of Rs 90,340 on the MCX. In the international market, the price was around $30.58 per ounce.
Navneet Damani, Senior VP – Commodity Research at Motilal Oswal Financial Services, said: "Gold and Silver prices have retreated from their record highs, influenced by some profit booking and the uncertainty surrounding the Fed interest rate cut and geo-political tensions."
This understanding of the market factors can equip audience with valuable insights for their investment decisions.
Both gold and silver prices have posted significant gains in the past few trading sessions. Hence, some profit booking at higher levels is warranted.
Also, in FOMC meeting minutes, Federal Reserve officials indicated that it would take longer than previously anticipated to gain greater confidence in inflation moving to 2%.
Damani said: "Many officials commented on uncertainty about the degree of policy; several officials believe that long-run rates need to be higher but also worry about the overall financial conditions. There was no change in rate cut probability for the month of September, post meeting minutes, and it is hovering around 50%. The steady dollar also weighed on metal prices, while safe-haven demand for gold cooled amid little signs of worsening geopolitical conditions in the Middle East after the Iranian President was killed in a helicopter crash."
On the data front, a few housing-related data points were reported to be lower than expected. "Today's focus will be on US weekly jobless claims, new home sales, and manufacturing and services PMI data from major economies," said Damani.
Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said: "Gold has experienced minor profit booking since yesterday night as the initial geopolitical tensions from Iran President's helicopter crash have faded. The market's focus has now shifted back to interest rate cut predictions, which are expected in September. In India, gold is quoted near Rs 73,900, down by Rs 125, with major resistance at Rs 74,500 for the time being. Minor profit booking may continue, potentially bringing prices down towards Rs 73,000."
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