Data showed that consumer prices in the United States rose sharply in May, resulting in the largest annual increase in nearly 13 years. Investors waited for the U.S. central bank’s policy meeting on June 15-16 for clarity on policymakers’ views on rising inflation and recovery in the world’s largest economy.
The dollar rose 0.1% to near a one-week high against its rivals, making the yellow metal more expensive for holders of other currencies. Some investors see gold as a hedge against higher inflation that could follow stimulus measures.
Demand for physical gold increased last week at major hubs in India and China, although dealers have historically been forced to offer discounts, while companies have come back to life in India as some Covid-19 restrictions were relaxed.
MCX gold futures fell 0.62% or Rs 303 to Rs 48,600 per 10 grams. Silver futures fell 0.62% or Rs 449 to Rs 71,778 per kg.
COMEX gold is trading down 0.5% to near $ 1,867 / oz after falling 0.9% on Friday. Gold remained under pressure as the US dollar held steady and the US bond yields rallied amid positioning for this week’s Fed meeting, ”said Ravindra Rao, CMT, EPAT, vice president of commodities research, Kotak Securities.
On the spot market, the highest purity gold was sold at Rs 49,028 while silver was priced at Rs 72,139 on Friday, according to the Indian Bullion and Jewelers Association.
“Mixed ETF flows and declining Indian consumer demand also weighed on prices. Gold could remain under pressure amid a strengthening US dollar, but a sharp drop is unlikely as the Fed is expected to maintain an accommodative stance, ”Rao added.
“We expect gold prices to trade sideways lower for the day with COMEX gold support at $ 1,850 and resistance at $ 1,880 per ounce. MCX support Gold August is at Rs. 48,600 and resistance at Rs. 49,200 per 10 grams, “said Tapan Patel, Senior Analyst (commodities), HDFC Securities.
Spot gold fell 0.5% to $ 1,867.51 an ounce at 1:19 a.m. GMT, its lowest since June 4. US gold futures fell 0.5% to $ 1,871.10 an ounce.
Silver slipped 0.4% to $ 27.78 an ounce, palladium fell 0.1% to $ 2,773.19, while platinum fell 0.8% to $ 1,141 .