Historically, the months of May and June witness robust demand for gold and jewellery, driven by the prevailing Hindu wedding season. However, with gold prices in India reaching unprecedented levels earlier, consumers are now exhibiting increased caution and delaying significant jewellery acquisitions, which has consequently led to a decline in both demand and gold prices. The yellow metal in the global bullion market experienced a slight decline on Wednesday as investors remained vigilant regarding escalating tensions in the Middle East and anticipated important US economic data. Expectations surrounding the US Federal Reserve’s potential to maintain elevated interest rates for an extended duration are presently exerting downward pressure on gold prices. Given that gold prices in India typically align with international trends, significant fluctuations in global bullion prices are likely to influence gold prices in various Indian cities.

As of June 3rd, there has been no fluctuation in gold prices, with 22-carat gold rates in India remaining stable at Rs.1,43,200 per 10 grams, and 24-carat gold rates at Rs.1,56,220 per 10 grams. In India, the rates for 18-carat gold remained unchanged at Rs. 1,17,170 per 10 grams. For substantial quantities, 100 grams of 24-carat gold is currently priced at Rs 15,62,200, whereas the cost of 22-carat gold today stands at Rs 14,32,000. The silver rate in India today exhibited stability, maintaining the same level as observed in yesterday’s performance. At present, the price of 1 kg of silver stands at Rs 2,80,000, with 100g priced at Rs 28,000. It is anticipated that gold prices will undergo a correction.

One may consider selling at Rs. 159800, with a stop loss set at Rs. 160500. Prices may fluctuate between Rs. 159000 and Rs. 158200, according to Nirmal Bang Securities. International gold prices are anticipated to decline further according to the ICICI Commodity Report, which stated, “Spot Gold is likely to slip further towards $4400 level amid firm dollar and rise in US treasury yields. Furthermore, prices could decline as the resurgence of hostilities in the Middle East may dampen expectations for a swift resolution between the US and Iran, potentially reigniting inflation concerns and leading to elevated interest rates for an extended period. Resumption of military strikes amid stalled diplomatic talks between the US and Iran will perpetuate elevated levels of anxiety.”

Gold futures at the multi-commodity exchange are experiencing a decline on Wednesday. Gold futures, set to mature on June 5th, are currently priced at Rs1,54,700, reflecting a decline of 0.55% per 10 grams as of 11:30 am. Similarly, silver futures set to mature on 3rd July declined by 0.48% to trade at Rs 2,65,440. As reported by Reuters, “Spot gold fell 0.3% to $4,471.38 per ounce by 0511, after rising more than 1% in the previous session. U.S. gold futures for August delivery decreased by 0.5%, settling at $4,499.30. Meanwhile, spot silver declined by 0.4%, reaching a price of $74.82 per ounce.”