The price of gold is falling today, while the price of silver is down by 0.21%. Gold June futures were down Rs 146 or 0.24% to Rs 61,273 per 10 grams on the Multi Commodity Exchange. At Rs 77,290 per kg on the MCX, silver July futures were trading 166 rupees lower. According to Reuters, the price of yellow metal slipped within a narrow range on Wednesday as market participants prepared for important U.S. inflation data that will be released later in the day and potentially affect the Federal Reserve’s policy stance. Spot gold had fallen 0.1% to $2,031.43 an ounce. The price of U.S. gold futures was $2,038.20, down 0.2%.
The price of gold remained unchanged in the early Asian hours as traders prepared for inflation statistics that would affect the U.S. Federal Reserve’s stance on policy. While New York Fed President John Williams said that it is still too early to determine if the US central bank has finished raising interest rates, Fed Governor Philip Jefferson stated that the US economy is slowing in an “orderly fashion”.
Williams’ remarks last month also altered the mood in the market and increased expectations for a rate hike from a pause. Market participants now anticipate a pause with a 77% probability, down from over 90%. President Joe Biden and top lawmakers decided to continue their negotiations on raising the $31.4 trillion debt ceiling on Tuesday. There are now only three weeks left until the United States might experience an unprecedented default. The Fed’s decision to raise interest rates will undoubtedly be influenced by important consumer price index inflation data that is scheduled for release later today.
Although it is anticipated that inflation will have marginally decreased in April compared to the previous month, it is still anticipated to register considerably above the Fed’s 2% annual objective. According to Manav Modi, MOFSL, the overall trend on the COMEX might be between 2015 and 2045 dollars, while the local gold price could be between Rs 60,800 and 61,600.