(by our business correspondent)
Mumbai: International bullion markets witnessed gold prices recover their footing above the $3,300 per ounce mark after initially declining by approximately one percent and losing this crucial level. The precious metal attracted renewed investor interest at lower levels, showing signs of recovery despite mixed global signals.
During today’s London trading session, both spot and futures prices remained relatively stable with narrow fluctuations, while silver prices experienced a modest 0.3 percent decline from higher levels. Amid these mixed international developments, the domestic jewelry market saw significant gains during mid-session trading, with gold prices surging by Rs. 473-475 per 10 grams and silver jumping by Rs. 1,128 per kilogram.
According to market sources, the domestic market’s mid-session performance was driven by speculative buying from stockists alongside demand from industrial consumers and jewelry manufacturers. Tax-free silver prices climbed by Rs. 1,128 per kilogram to reach Rs. 97,653, while gold also benefited from the global market’s recovery trend.
Standard gold (995 touch) prices increased by Rs. 473 per 10 grams to Rs. 95,244, while pure gold (999 touch) gained Rs. 475 per 10 grams to reach Rs. 95,627 on a tax-free basis. However, sources indicated that demand from jewelry manufacturers and retail-level purchasing remained sporadic and limited.
Yesterday’s trading on the New York Mercantile Exchange’s COMEX division saw gold prices initially drop exactly one percent, falling below the $3,300 per ounce threshold before bargain hunters emerged at lower levels, pushing prices back above this key resistance level. Today’s London session opened with spot and futures prices stabilizing near yesterday’s closing levels at approximately $3,302.22 and $3,300.60 per ounce respectively, while silver traded around $33.21 per ounce, down 0.3 percent from the previous close.
The temporary dip below $3,300 per ounce attracted some buyer interest, though the easing of trade war tensions between the United States and European Union limited overall price gains, according to Tim Watson, Chief Market Analyst at KCGM Trade. Watson noted that current support levels for global gold lie between $3,250-3,280 per ounce, with potential for prices to reach $3,400 per ounce if risk factors intensify.
Market participants are currently focused on crucial Personal Consumption Expenditure data scheduled for release this Friday, which could influence Federal Reserve policy decisions. Yesterday’s rebound in the U.S. Consumer Confidence Index for May, after five consecutive months of decline, provided some positive sentiment.
Overall, gold price movements will continue to depend on the impact of Trump’s tariff policies and their effects on the economy, Watson added. Investors are particularly watching for NVIDIA’s upcoming results and Personal Consumption Expenditure data, both due this Friday.