Gold slips 1.36 pc weekly as strong US inflation data bolsters Fed rate hike bets

Gold prices fell 1.36 per cent for the week as stronger US inflation data and a firm dollar boosted expectations of further Federal Reserve rate action. MCX gold and silver also declined, with markets remaining in a consolidation phase amid policy uncertainty.

New Delhi: 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. Currently, gold futures stand at Rs 1,56,000, while silver futures at Rs 2,67,000 per kg.

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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 market opening, according to data published by the India Bullion and Jewellers Association (IBJA).

The dollar index rose about 0.10 per cent, while US personal consumption expenditures (PCE) 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.

“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,” an analyst said.

Higher energy prices fuel inflationary pressure increasing the likelihood of Fed tightening, denting gold’s appeal as investors gravitate toward yield-bearing assets.

The recent US Fed’s ‌meeting minutes showed that more officials are now open to the possibility that they may need to hike rates.

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, he added.

Technically, immediate resistance is placed in the $4,600–$4,650 region and the $4,400–$4,350 range continues to serve as a critical support area, market participants said.

For MCX Gold, immediate resistance is placed in the Rs 1,60,000 to Rs 1,62,000 range and the Rs 1,54,000–Rs 1,52,000 region continues to act as a critical support base.