In India, gold prices experienced a decline on Friday, as indicated by data sourced from the Multi Commodity Exchange (MCX).
The price of gold was recorded at 73,161 Indian Rupees (INR) per 10 grams, marking a decrease of INR 51 compared to Thursday’s rate of INR 73,212.
In terms of futures contracts, the price of gold dropped to INR 72,912 per 10 grams from INR 72,980 per 10 grams.
Conversely, silver futures contracts saw an uptick in prices, rising to INR 87,575 per kilogram from INR 87,300 per kilogram.
| Major Indian City | Gold Price |
|---|---|
| Ahmedabad | 75,730 |
| Mumbai | 75,490 |
| New Delhi | 75,485 |
| Chennai | 75,730 |
| Kolkata | 75,650 |
Global Market Update: Comex Gold Price Rises Despite Fed Officials Hinting at Prolonged Interest Rate Elevation
- The US weekly Initial Jobless Claims rose to 222K for the week ending May 11, surpassing the previous week’s 232K and the estimated 220K, as reported by the US Bureau of Labor Statistics (BLS).
- Housing Starts climbed by 5.7% month-over-month (MoM) to 1.36 million in April, while Building Permits declined by 3% MoM in April to 1.44 million.
- Atlanta Fed President Raphael Bostic remarked on the recent Consumer Price Index (CPI) report, noting indications of easing inflation, but he emphasized the importance of monitoring data from May and June to confirm this trend.
- Cleveland Fed President Loretta Mester expressed satisfaction with current policy positioning and stated it was premature to conclude that progress on inflation had halted.
- Richmond Fed President Tom Barkin highlighted the necessity for the central bank to maintain elevated borrowing costs for an extended period to ensure inflation aligns with its target, citing increased prices in the services sector.
- Financial markets are currently pricing in a nearly 75% probability of a Fed rate cut in September, up from 65% earlier in the week. Additionally, markets anticipate full 25 basis point (bps) rate cuts by the end of the year, according to the CME FedWatch Tool.
