New Delhi, May 30 (IANS): Gold prices dipped 1.36 per cent during the week as a stable dollar and stronger-than-expected US inflation data reinforced expectations that the US Federal Reserve may raise interest rates later this year. On Friday, MCX gold June futures dipped 0.59 per cent while MCX silver May futures lost 0.94 per cent, with gold futures currently standing at Rs 1,56,000 and silver futures at Rs 2,67,000 per kg. The price of 10 grams of 24-carat gold was at Rs 1,56,463 on Friday, down from Rs 1,58,622 seen on Monday’s market opening, according to data published by the India Bullion and Jewellers Association. The dollar index rose about 0.10 per cent, while US personal consumption expenditures rose 3.8 per cent year-on-year in April, the fastest pace since May 2023, bolstering expectations of US Fed rate hikes this year. The recent US Fed meeting minutes showed that more officials are now open to the possibility of needing to hike rates, with higher energy prices fuelling inflationary pressure and increasing the likelihood of Fed tightening, denting gold’s appeal as investors gravitate toward yield-bearing assets.
COMEX Gold is currently trading in the $4,570–$4,600 range, with weekly price action continuing to reflect a consolidation phase and a cautious undertone, according to an analyst who noted that gold and silver continue to attract selective safe-haven and value-oriented buying near key technical levels, although upside momentum remains closely linked to expectations surrounding US monetary policy, bond yields and the trajectory of the US dollar. Technically, immediate resistance for COMEX Gold is placed in the $4,600–$4,650 region, with the $4,400–$4,350 range continuing to serve as a critical support area. For MCX Gold, immediate resistance is placed in the Rs 1,60,000 to Rs 1,62,000 range, while the Rs 1,54,000–Rs 1,52,000 region continues to act as a critical support base.