Global Gold Softens Ahead of US Inflation Data Local Gold Drops ₹210, Silver Falls ₹1000
(From Commerce Correspondent)
Mumbai: Global markets witnessed a cautious approach in precious metals trading today as investors focused on the upcoming US Personal Consumption Expenditure data scheduled for release later in the evening. London trading sessions opened with a subdued tone in both spot and futures gold prices, while silver prices also declined, leading to retreats in local jewelry markets during mid-session trading. Gold prices fell by ₹210 per 10 grams, while silver dropped by ₹1000 per kilogram.
According to market sources, today’s mid-session trading saw lackluster global reports putting pressure on silver through profit-booking by stockists, with limited fresh buying interest. Industrial consumers and jewelry manufacturers maintained adequate demand levels amid the price decline environment, keeping silver prices at ₹97,100 per kilogram after the ₹1000 reduction.
Similarly, gold experienced cautious approaches from stockists and investors following global market trends. With jewelry manufacturers and retail-level buying remaining adequate, mid-session prices dropped by ₹210 per 10 grams, with 995 touch standard gold trading at ₹94,933 and 999 touch standard gold at ₹95,315.
Despite modest recovery from yesterday’s declined levels at the New York Mercantile Exchange, today’s London session opening saw investor reluctance toward fresh buying in gold and silver. Spot gold prices quoted around $3,303.51 per ounce, down 0.4% from yesterday’s close. Notably, gold has declined 1.6% so far this week. Futures also traded lower at approximately $3,300.70, down 0.5% from the previous close, while spot silver quoted around $33.10 per ounce, declining 0.7% from yesterday’s close.
Brian Lan, Managing Director of Singapore-based GoldSilver Central, indicated that global gold prices are currently showing consolidation patterns. He added that recent gradual improvements in the Dollar Index are contributing to range-bound fluctuations in gold prices. Additionally, investors adopted cautious stances due to focus on today’s evening release of US Personal Consumption Expenditure data. However, Reuters projections suggest April inflation may show a 2.2% increase compared to March’s 2.3% rise.
Furthermore, San Francisco Fed President Mary Daly stated yesterday that Federal policymakers might implement two interest rate cuts this year, though rates will remain stable until inflation reaches the targeted two percent level. However, sources noted that last Wednesday’s US Trade Court injunction on Trump’s reciprocal tariffs temporarily eased trade war concerns, weakening safe-haven demand for gold.