New Delhi, June 6 (IANS). Gold prices fell 0.87 percent this week after better-than-expected US employment data, which raised the possibility that the US central bank the Federal Reserve may keep interest rates at higher levels for a longer period.
On Friday, the last trading day of the week, on the Multi Commodity Exchange (MCX), gold futures for August delivery fell by 2.47 percent, while silver futures for July delivery recorded a huge fall of 6.27 percent. At present, gold futures were seen trading at Rs 1,55,600 per 10 grams and silver at Rs 2,48,201 per kilogram.
According to India Bullion and Jewelers Association (IBJA) data, the price of gold of 999 purity stood at Rs 1,54,238 per 10 grams on Friday, while at the beginning of the week on Monday the price was Rs 1,55,599. That means, there has been a decline of Rs 1,361 in gold prices in a week.
At the same time, according to IBJA data, the price of silver of 999 purity was Rs 2,56,908 per kg, whereas at the beginning of the week on Monday, the price of silver was Rs 2,63,250 per kg. That means the rate of silver has become cheaper by Rs 6,342 in a week.
In the international market, gold on Comex fell by $ 136 to a low of $ 4,369 per troy ounce, which is the weakest level since the end of March. With this, gold fell by about 5 percent in a week.
At the same time, the price of silver fell by $ 5.34 to reach $ 68.63 per troy ounce. Silver fell by almost 9 percent during the week and this was the fourth consecutive week when it fell.
The dollar index rose to around 99.5 due to strong employment data. Additionally, US Treasury bond yields also increased, which weakened demand for non-interest-bearing investment options such as gold and silver.
Market experts say that inflation in America still remains above the target of the Federal Reserve. Due to this, there is a possibility of increase in interest rates in the year 2026 and the belief has been strengthened that interest rates may remain higher for a longer period than before.
According to analysts, the position of silver remains weaker than that of gold. There is continuous selling pressure in this, due to which there are concerns regarding profit booking and industrial demand.
Experts say that gold has shown some strength around key support levels, but there is still an atmosphere of caution in silver.
According to market experts, gold on Comex is currently trading around the support level of $4,350. Whereas the range of $4,460 to $4,500 is being considered as the main resistance area for it.
Experts said that geopolitical developments in West Asia, crude oil supply situation, movement of the US dollar, comments from central banks and key economic data will play an important role in deciding the direction of gold and silver prices in the coming days.
–IANS
DBP