Gold and silver futures fell on Wednesday, taking cues from the international spot rates. On the Multi Commodity Exchange (MCX), gold futures, due for a June 3 delivery, were last seen 0.22 per cent down at Rs 50,065, compared to the previous close of Rs 50,173. Silver futures, due for a July 5 delivery, were last seen 0.60 per cent lower at Rs 60,790 against the previous close of Rs 61,156.
Domestic spot gold with a purity of 24 carats opened at Rs 50,297 per 10 grams today, and silver at Rs 60,961 per kilogram - both rates excluding GST (goods and services tax), according to Mumbai-based industry body India Bullion and Jewellers Association (IBJA).
Foreign Exchange Rates:
Gold prices fell as the U.S. dollar recovered slightly, piling pressure on greenback-priced bullion alongside firm Treasury yields and an aggressive inflation stance by Federal Reserve Chairman Jerome Powell.
Spot gold dropped 0.29 per cent to $1,809.40 per ounce. U.S. gold futures slipped 0.6 per cent to $1,808.10.
The higher dollar usually reduces the appeal of gold for investors holding other currencies.
Ravindra Rao, CMT, EPAT, VP - Head Commodity Research at Kotak Securities: "COMEX gold trades modestly lower near $1,810 per ounce weighed down by pause in recent slide in US dollar index following hawkish comments from Fed Chairman. ETF outflows also showed continuing exodus by investors. Gold may remain choppy as market players react to economic numbers and central bank comments. Fed's tightening outlook may keep pressure on prices."