Today Gold Rates In Chennai - May 15: 18K, 22K, 24k Yellow Metal Prices Get Dearer By Rs 3,500

On Wednesday, the Fed Chair characterises hotter-than-expected PPI data as "mixed," which causes gold prices in Chennai and other areas of India as well as globally to soar. In Chennai, the cost of 22-karat gold is now Rs 6,725 per gramme, while 24-karat gold is priced at Rs 7,336 per gramme. In Chennai, the cost of 100 grams of 22k gold is currently Rs 6,72,500, up from Rs 6,69,000 yesterday-a rise of Rs 3,500. In Chennai, the cost of 100 grams of 24k gold is currently Rs 7,33,600, up from Rs 7,29,800 yesterday-a rise of Rs 3,800.

In Chennai, the price of one hundred grams of 18k gold is Rs 5,50,900 today, up from Rs 5,48,000 yesterday-a rise of Rs 2,900.

On the global front, "Yesterday, the US PPI inflation data came in as hotter than expected as the US PPI Final demand (April) m-o-m was up 0.50% Vs the forecast of 0.30%, PPI ex food and energy m-o-m was also up 0.5% as against the expectation of 0.20%. PPI ex food and energy y-o-y stood at 2.40% Vs the forecast of 2.30%, whereas PPI final demand y-o-y at 2.20%, which was in line with the forecast. Bond markets and gold recovered from an initial selloff following the data on the notion that some of the elements in the PPI report, which will go into the PCE deflator report, were not hot enough. Moreover, downward revisions to the prior data also mitigated the impact. The US Fed Chair Powell called the data mixed, which also supported the bonds; thus, in turn gold. Spot gold closed with a gain of nearly 0.75% at $2356 as the US yields and Dollar slipped," said Praveen Singh - Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas.

Today US CPI and retail sales data will be crucial for the metal, globally the spot gold price is expected to trade in a range of $2330 and $2380-$2400 band, Praveen Singh further added.

In the domestic market MCX Gold climbed despite data showing US producer prices rose in April by more than projected, as markets look ahead to tomorrow's consumer figures. "Stickier-than-expected inflation in the US has meant the Federal Reserve has not yet made the steady cuts to interest rates that traders had priced in at the start of the year. Gold's gains have been underpinned by central bank buying and heightened geopolitical risks in the Middle East, which have drawn haven flows. Bullion has also been supported by increased demand from China, where appetite has soared as investors grapple with an underperforming economy and lackluster markets.

Meanwhile, spot platinum traded at its highest levels since June 2023 after the World Platinum Investment Council revised forecasts to issue a bigger market deficit of 476,000 ounces. Mine supply for the metal will fall by 3% this year, the body which is a market development organization for the industry said in a May 13 report," said the research analysts of the brokerage firm Nirmal Bang Securities Pvt. Ltd.

"Exchange-traded funds cut 21,690 troy ounces of gold from their holdings in the last trading session, bringing this year's net sales to 5.06 million ounces, according to data compiled by Bloomberg. This was the fourth straight day of declines, the longest losing streak since April 11. The sales were equivalent to $50.7 million at yesterday's spot price. Total gold held by ETFs fell 5.9 percent this year to 80.5 million ounces, the lowest level since Sept. 18, 2019. Gold advanced 13 percent this year to $2,336.32 an ounce and fell by 1 percent in the latest session. State Street's SPDR Gold Shares, the biggest precious-metals ETF, maintained its holdings in the last session. The fund's total of 26.7 million ounces has a market value of $62.5 billion. ETFs also cut 1.44 million troy ounces of silver from their holdings in the last trading session, bringing this year's net sales to 10.5 million ounces," they further added.

Gold Price Prediction

"Gold may trade in the range of 72300-72700, and Silver also trades in the range of 85100-85700, with a sideways to bullish bias. Gold prices inched down on Wednesday ahead of a key U.S. inflation data that could offer insight into the Federal Reserve's interest rate trajectory. Markets' focus will be on the U.S. Consumer Price Index (CPI) data due today. U.S. producer prices increased more than expected in April amid strong gains in the costs of services and goods, indicating that inflation remained elevated early in the second quarter. Meanwhile, Fed Chair Jerome Powell said he expects U.S. inflation to continue declining through 2024 as it did last year and noted it was unlikely the Fed would have to raise interest rates again. Federal Reserve Bank of Cleveland President Loretta Mester said that it was appropriate for the Fed to hold rates steady as it awaits evidence that price pressures are easing further," said SMC Global Securities Ltd in a note.