Gold and silver prices have seen significant gains in recent trading sessions, justifying some profit-taking at higher levels. Additionally, in the FOMC meeting minutes, Federal Reserve officials indicated that it would take longer than expected to gain greater confidence in inflation reaching 2%.
Many officials cited uncertainty over the extent of monetary policy, with several saying long-term rates need to be higher, but they also worry about overall financial conditions. There was no change in the rate cut probability for September, following the meeting minutes, and it is hovering around 50%.
“The stable dollar also weighed on metals prices, while demand for safe-haven gold cooled while geopolitical conditions in the Middle East showed little sign of deterioration, following the death of the Iranian president in a helicopter accident. On the data front, a few housing-related data points were reported lower than expected, today’s focus will be on weekly U.S. jobless claims, new home sales and manufacturing and PMI data. services of major economies,” said Navneet Damani, Senior Vice President – Commodity Research at Motilal Oswal Financial Services
Silver prices have gained 14% in May so far and have shown declines over the past two trading sessions. Bullion plunged during Thursday’s session as benchmark stock indices surged to close at new all-time highs. The 30-component S&P Sensex closed 1.6 per cent higher at Rs 75,418, while the broader NSE Nifty 50 closed 1.64 per cent higher at Rs 22,967, 65. Also read: Nifty hits all-time high, Sensex jumps 1,200 points. Is RBI behind the sugar rush? (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
