New Delhi: Gold prices rose marginally by 0.21 per cent in futures trade on Thursday, May 14, as traders tracked ongoing talks between US President Donald Trump and his Chinese counterpart Xi Jinping amid heightened geopolitical and economic uncertainty.
On the Multi Commodity Exchange (MCX), the yellow metal for June delivery rose by Rs 334, or 0.21 per cent, to Rs 1,62,520 per 10 grams in a business turnover of 8,220 lots.
The metal had surged by Rs 8,744, or nearly 6 per cent, to settle at Rs 1,62,186 per 10 grams in the previous session following the government’s decision to raise import duties on precious metals.
The duty hike follows Prime Minister Narendra Modi’s clarion call for curbs on gold purchases, along with other austerity measures, to reduce avoidable foreign-exchange expenditure.
However, silver declined by Rs 2,338, or 0.78 per cent, to Rs 2,97,900 per kilogram in 8,046 lots. On Wednesday, it had zoomed by Rs 21,176, or nearly 8 per cent, to close at Rs 3,00,238 per kg on MCX.
“Gold and silver prices saw mixed movements on Thursday amid recent macroeconomic shifts and geopolitical tensions,” Gaurav Garg, Research Analyst at Lemonn Markets Desk, said.
The recent hike in import duties on gold and silver has created waves in the market, driving domestic demand and prompting increased investment in gold-backed exchange-traded funds, he added.
In the international market, Comex gold futures for the June contract traded flat at USD 4,705.92 per ounce, while silver for July delivery fell nearly 2 per cent to USD 87.82 per ounce in New York.
Gold traded flat in Asian markets as investors remained cautious during talks between Trump and Chinese President Xi Jinping in Beijing, where discussions are centred around trade relations, the Iran conflict, and broader global supply chain risks, Manav Modi, Commodities Analyst Motilal, Oswal Financial Services Ltd, said.
According to analysts, market participants were looking for signs that the two leaders could ease geopolitical tensions that have rattled commodities and currency markets in recent weeks.
Persistent tensions in the Middle East and disruptions around the Strait of Hormuz continued to offer some safe-haven support to bullion, though elevated US inflation data and a firm dollar capped gains, Modi said.
Investors are also awaiting US retail sales data later in the day for fresh cues on the Federal Reserve’s (Fed) interest rate outlook, he added.
Analysts said market participants also assessed the Senate clearance of Kevin Warsh as the next Fed Chair, with investors closely watching for potential shifts in the US central bank’s monetary policy stance amid persistent inflationary pressures and elevated crude oil prices.
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