Gold Price In Chennai Falls For 2nd Day, 24k/100 Grams Gold Down By Rs 22,900 In 2 Days

For the second day in a row, India's gold prices lost their lustre due to hawkish Fed policy and strong US data. The strong US PMIs and the hawkish FOMC minutes that were issued on May 22nd added to the yellow metal's downward pressure. Since we're talking about gold prices in Chennai, it's important to note that on Friday, May 24, the price of 24k gold grammes dropped by Rs 10,900, making gold cheaper in Chennai by Rs 22,900 in only two days.

In Chennai, the cost of 22-karat gold is now Rs 6,650 per gramme, while 24-karat gold is priced at Rs 7,255 per gramme. The price of 22-carat gold per 100 grammes in Chennai is Rs 6,65,000 today, which is Rs 10,000 less than it was yesterday at Rs 6,75,000. The price of 24-carat gold per 100 grams in Chennai is Rs 7,25,500 today, down from Rs 7,36,400 yesterday-a markdown of Rs 10,900.

The rate for 18-carat gold per 100 grams is Rs 5,44,700 today, which is Rs 8,200 less than it was yesterday (Rs 5,52,900).

According to Praveen Singh - Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas, Hawkish FOMC minutes released on May 22 continued to weigh on the yellow metal, which fell for the third straight day. The fall was precipitated by robust US PMIs.

"Gold is looking somewhat oversold as FOMC minutes are of the meeting that happened before the release of the key US data like retail sales, nonfarm payroll, ISM services, etc, which were quite disappointing. S&P Global US PMIs portray a much better picture than the one reflected by ISM PMIs," said Praveen Singh.

Bullion Outlook Today

"Spot gold is likely to slip further towards $2300 level amid firm dollar and surge in US treasury yields. Yields and Dollar are moving north as recent batch of economic data from US showed resilience in economic activity, reinforcing expectations that US Federal Reserve would delay its first rate cut and even pushed back 2 rate cut expectations. Manufacturers in US reported higher prices for range of inputs, signaling good inflations to accelerate in coming months. Spot gold is likely to slip towards $2300 level (50-Day EMA) as long as it stays below $2355 level (20-Day EMA). A sustain break below $2300 prices may move towards $2280/$2250 levels," said the research analysts of ICICI Direct Research in a note.

MCX Gold Outlook Today

"MCX Gold June prices is likely to slip further towards 70,800 level as long as it stays below 72,000 level. As break below 70,800 level prices may slide further towards 70,300 level (50-Day EMA)," the research analysts of ICICI Direct Research added.

Gold Price Prediction Today

"Gold and silver prices are trading range-bound today on the international bourses. We expect gold and silver prices to trade ranger-bound to slightly negative for the day, as gold prices headed for its biggest weekly decline this year after hitting an all-time high on Monday, as hotter-than-expected US inflation data reinforced bets the Federal Reserve would keep interest rates elevated. Gold's biggest daily fall this week came on Thursday when data showed US business activity accelerated in early May at the fastest pace in two years - dousing hopes the central bank will soon pivot to monetary easing," said the research analysts of Nirmal Bang Securities Pvt. Ltd.

Key Events That May Trigger Gold Price Movement Today

Today's major US data include durable goods orders (April preliminary), University of Michigan sentiment and short- and long-term inflation expectations (May final) are the major events that are likely to hit gold price movement according to Praveen Singh.

Disclaimer

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