Speculators reduced their holdings on Friday, resulting in a drop in the price of gold by ₹39 to ₹71,538 per 10 grams in futures trade, as reported by PTI. The gold futures for June delivery on the MCX closed lower by ₹39 at ₹71,538 per 10 grams with a trading volume of 7,184 lots.
The decline in the price of precious metals was attributed to weak global cues, reflecting the interconnectedness of global markets and their impact on commodity prices.
Gold was trading 0.15 percent higher globally at USD 2,363.20 per ounce in New York, according to a PTI report, showcasing the influence of international factors on domestic gold prices.
Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, pointed out that gold experienced a significant selloff this week, dropping from ₹74,350 to ₹71,500. This decline was linked to the reduced likelihood of the Fed cutting rates early, highlighting the importance of central bank policies on gold prices.
As hopes for a US interest rate cut diminished, gold prices saw a slight uptick on Friday but were set to register their first decline in three weeks, aligning with market sentiments and expectations.
Overseas buyers found dollar-priced bullion more affordable as the dollar index declined gradually, showcasing the impact of currency fluctuations on gold prices.
Insight on Gold Price Outlook
According to Manoj Jain, CEO of Prithvi Finmart, global gold prices are projected to range between USD 2,500 and USD 2,600 by year-end, providing a broader perspective on the long-term trends in the gold market.
With factors like the US general elections and inflation influencing gold prices, Naveen Mathur from Anand Rathi Shares and Stock Brokers anticipates pressure on gold prices in the near future, emphasizing the importance of geopolitical events and economic indicators on gold movements.
Despite short-term fluctuations, long-term fundamentals support gold prices, suggesting a resilient market that may experience periodic dips but maintains strong underlying demand.
Looking ahead, Mathur predicts potential highs for gold in the coming months, demonstrating the dynamic and evolving nature of the gold market.
It is essential to consider expert opinions and market analysis before making investment decisions in the volatile and interconnected world of commodities.
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Published: 25 May 2024, 07:56 AM IST
