Gold, Silver Prices: Cheapest Gold To Buy Is Rs 5,370-5,450 In Chennai, Mumbai, Delhi; June 10-14 Outlook

Gold and silver prices rebounded in the trading week from June 3-7, after two consecutive weekly drops. However, on Saturday, gold prices witnessed a massive drop in prices of 24K, 22K, and 18K. In the coming days, gold prices are likely to trade between Rs 72,000 to Rs 75,000. If a Rs 75,000 mark is stored for the yellow metal, it would become a new all-time high. Meanwhile, recovery in industrial commodities is seen as a key positive for silver ahead.

On June 9, 22K of 10 grams of gold is at Rs 65,700, while 24K and 18K of the same gram are available at Rs 71,670 and Rs 53,760 respectively.

This comes after gold prices dropped by Rs 208 to as steep as Rs 20,800 in 24K prices on Saturday. Prices tracked the decline in international gold after the People's Bank of China declared to temporarily pause its massive gold bullion purchases. Secondly, the US job report revealed that the country added 272,000 new jobs, far higher than economists' expectations, which worries investors over inflationary pressures ahead and that could delay the rates cut scenario.

Currently, the cheapest gold to buy is 1 gram in 18K which is available at Rs 5,447 in Chennai, at Rs 5,376 in cities like Mumbai, Kolkata, Bangalore, Hyderabad, and Kerala. While the national capital, Delhi including Vadodara and Ahmedabad offered the cheapest gold at Rs 5,380 each.

From June 3-7, gold prices surged by nearly 2%.

Coming to silver, prices stood at Rs 91,500 for 1 kg, Rs 9,150 for 100 grams, and Rs 915 for 10 grams.

Talking about gold performances, SMC Global Securities in its WISE MONEY report said, "Both gold and silver rebounded after a two-week decline. The European Central Bank went ahead with its first interest rate cut since 2019 on Thursday, Fed may follow suit."

As per the brokerage, bullion prices may trade with a bullish bias as traders stepped up bets that the U.S. Federal Reserve will start cutting rates soon, sending the dollar and Treasury yields lower. Globally, interest rate expectations are falling. On Wednesday, the Bank of Canada cut its rate to 4.75% from 5.00% and on Thursday the European Central Bank (ECB) did the same, cutting its main refinancing rate by 0.25% to 4.25%. After the release of lower inflation data in Switzerland, speculation is also rising for the Swiss National Bank to cut its key rate when it makes its decision on June 20.

Furthermore, SMC's note explained that the decision to lower interest rates is positive for Gold as it broadly reduces the opportunity cost of holding the non-yielding asset. U.S. job openings fell more than expected in April, as labour market conditions softened in a manner that could help the Fed's fight against inflation.

Weekly Outlook From June 10-15:

In SMC's view, Net purchases of gold by global central banks rose to 33 metric tons in April from a revised net buying of 3 tons in March, the World Gold Council (WGC) said, signalling continuing strong appetite from the sector despite high prices for the metal. But Russia's finance ministry said it would reduce its purchases of foreign currency and gold in the month ahead, a move that will increase the state's overall forex sales. Swiss gold exports fell in April from March as higher supplies to India and Turkey were offset by lower deliveries to China and Hong Kong, customs data showed.

Lastly, the brokerage added, " Gold prices may trade in the range of 72000-75000 levels while silver prices may move in the range of 92000-96000 levels. Recovery in the industrial commodities is positive for the silver prices."