On Tuesday, the prices for gold and silver both decreased. The price of June delivery gold futures on the multi-commodity exchange was Rs 60,903, down 124 points, and the price of July delivery silver futures was Rs 73,116, down 286 points. While the US debt-ceiling issue and fear of a default restrained additional losses in bullion, gold prices globally dropped somewhat as traders examined statements from US central bank officials on interest rates remaining high.
While US gold futures declined by just 0.1% to $2,020.20 per ounce, spot gold fell by 0.2% to $2,016.72 per ounce. While this was going on, spot silver prices dropped by 0.3% to $24.04 per ounce, platinum prices dropped by 0.1% to $1,063.66, while palladium prices barely changed at $1,531.60.
Gold prices increased on Monday despite comments from Federal Reserve officials as traders stuck to their forecasts of interest rate cuts before the year’s end and kept a watch on the US debt ceiling talks. In the interim, President Joe Biden and Republican House Speaker Kevin McCarthy began a vital week of debt-ceiling discussions to avert a disastrous default. The majority of market players kept predicting at least one rate cut before 2023 is over. As interest rates increase, gold with a zero yield becomes less appealing.
“We anticipate that safe-haven demand and a stable US currency will continue to support the gold rate. Comex spot gold has support at $2010 and resistance at $2035 and $2050 per ounce for the day. Saumil Gandhi, Senior Analyst (Commodities), HDFC Securities, stated that the MCX Gold June future has supports at Rs 60600/60470 per 10 grams and resistances at Rs 61280/61480 per 10 grams.
