Gold Price Today: Yellow metal rises to Rs 70,876/10 grams, silver at Rs 81,785/kg

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As hopes for rate cut get delayed and tensions in the Middle East seem to intensify, gold prices on MCX for June futures contracts rose by Rs 208 or 0.29% to trade at Rs 70,876 per 10 grams while MCX July silver contracts were up by Rs 742 or 0.92% to Rs 81,785 per kg.

Gold prices firmed on Monday on expectations that the Federal Reserve will start cutting interest rates later in the year. Also, tensions in the Middle East boosted the allure for the non-yielding bullion.

Gold and silver exhibited significant volatility, bouncing back from their lows following lackluster U.S. job data but struggled to maintain their gains amidst easing geopolitical tensions.

The dollar index and U.S. bond yields also retreated from their peaks following disappointing U.S. economic indicators, providing support for precious metals.

In the US markets, spot gold rose 0.4% at $2,310.89 per ounce, as of 0244 GMT. US gold futures gained 0.6% to $2,322.30 per ounce.Today, the US Dollar Index, DXY, was hovering near the 105.16 mark, rising 0.13 or 0.12%.“The reaction in gold and silver was positive after the release of U.S. Employment data on Friday, indicating signs of a slowdown in the U.S. economy. April’s Nonfarm Payrolls (NFP) reported 175K jobs, falling short of the expected 243K. Moreover, the Unemployment Rate rose to 3.9%, and Average Hourly Earnings dipped by 3.9% YoY in April. While this data increased the likelihood of a Federal Reserve (Fed) rate cut, the mitigation of geopolitical tensions constrained further upside,” says Rahul Kalantri, VP Commodities, Mehta Equities.

Range for MCX Gold and Silver according to Rahul Kalantri:

  • Gold finds support at Rs 70,520 and Rs 70,350, with resistance at Rs 70,980 and Rs 71,120.
  • Silver finds support at Rs 80,540-80,080, while resistance is at Rs 81,940 and Rs 82,580.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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