Gold, silver price on May 30: Yellow metal price declines more than 1%, nears Rs 72,000

Gold prices on the MCX hovered at Rs 72,011 per 10 grams on Thursday, hitting an intraday low of Rs 71,743. In the international market, prices maintained a similar trend, hovering around $2,338.45 per ounce. 

This indicates a certain level of stability in the gold market.

Meanwhile, silver hovered at Rs 95,800 per kg and hit an intraday low of Rs 93,700 on the MCX. In the international market, the price hovered around $32.05 per ounce. Kaynat Chainwala – Senior Manager, Commodities Research – Kotak Securities, says, "COMEX Gold prices declined more than 1% on Wednesday, as traders assessed hawkish Fed remarks this week.

The Fed Beige Book survey of regional business contacts published yesterday showed that the US economy expanded at a “slight or modest” pace across most regions and consumers pushed back against higher prices since early April. Investors now await the second estimate of GDP figures and US weekly jobless claims later today, as well as the Fed’s preferred US PCE inflation report on Friday for more cues on the policy outlook."

Manav Modi, Analyst, Commodity and Currency, MOFSL, said, "Focus among metal markets was squarely on more cues on U.S. interest rate cuts, especially as a slew of hawkish signals from the Fed saw traders steadily price out expectations for a cut in September. Minneapolis Fed President Neel Kashkari warned in his statements that some policymakers had not ruled out more rate hikes to quell sticky inflation."

Several Fed officials have mentioned that they require further evidence regarding an ease in inflation to consider a rate cut this year. 

Bets for a rate cut in September are hovering between 40% and 50%. Updates regarding geopolitical tensions are cushioning the safe-haven assets on the lower end. Israel's attack on Rafah continues to increase distress in the Middle East countries. 

US consumer confidence earlier this week was reported better than expectations, at 102 vs 96, supporting an up-move in Dollar Index. Along with speculative buying, rally in Industrial metals also supported silver prices. Modi says, "Focus today will be on US GDP and weekly jobless claims data, which could trigger volatility in the market."

Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities said, "Gold price faced resistance at $2355-2360 in Comex, and MCX Gold faced selling around Rs 72450. Amid dollar minor rise, and upcoming PCE price index data on Friday which will hint towards inflation projections thus profit booking was seen in Gold after a positive rally from Rs 71250 to Rs 72450 in last three trading sessions. Going ahead gold will take support near Rs 71000 and resistance near Rs 72600 till PCE price index data flashes out."