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Bullion prices sluggish as hopes on rate cut by US Fed fading

Bullion prices sluggish as hopes on rate cut by US Fed fading
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New Delhi: Gold prices dropped Rs130 to Rs72,750 per 10 grams in the national capital on Monday in line with weak trends in the overseas markets, according to HDFC Securities.

The precious metal had closed at Rs72,880 per 10 grams in the previous session. However, silver prices remained flat at Rs84,500 per kg.

“Spot gold prices (24 carats) in the Delhi markets are trading at Rs 72,750 per 10 grams, down by Rs130 against the previous close,” said Saumil Gandhi, senior analyst (commodities) at HDFC Securities.

In the international markets, spot gold at Comex was trading at $2,333 per ounce, down by $5 from the previous close.

“Gold traded steady as expectations of interest rate cuts by the US Federal Reserve faded and as geo-political tensions eased. The delay in the interest rate cut has supported the US dollar index and US Treasury yields, which weighed down on the yellow metal prices,” added Navneet Damani, senior V-P (commodity research) at Motilal Oswal Financial Services.

However, silver was marginally up at $27.22 per ounce. In the previous close, it had settled at $27.20 per ounce.

“Investors will be awaiting for the US macro data this week, including ADP employment change (April), JOLTs job openings (March), and non-farm payroll data, which will further provide direction for the bullion prices,” said Praveen Singh, associate V-P (fundamental currencies and commodities) at Sharekhan by BNP Paribas.

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