Gold and Silver Prices Plummet: Gold drops below Rs 71,000 to lowest level in two months – What’s your next move?

Key Takeaways:

• Gold futures fell to below Rs 71,000 on June 10, 2024, reflecting a two-month low.
• Silver futures, on the other hand, rose by 0.6% in early trade.
• International spot gold and silver prices also showed volatility, influenced by the US dollar and bond yields.
• City-wise gold rates in India on June 10 for 24k and 22k gold have been provided for major cities.

Gold and Silver Rate Trends on June 10, 2024:

Gold futures for August delivery at MCX experienced a decrease of Rs 478, dropping to Rs 70,875, while silver futures for July delivery went up by Rs 550, reaching Rs 89,639. This trend reflected the global benchmark rates’ fluctuations over recent trading sessions.

At 11 am on the same day, gold futures were down by Rs 477 at Rs 70,876, while silver futures were up by Rs 371 at Rs 89,460. In the international market, spot gold marginally increased to $2,296.5 per ounce, with silver up by 1.3% at $29.6 per ounce.

Impact of Rupee-Dollar Exchange Rate:

The rupee weakened by 10 paise against the US dollar, standing at 83.50 in early trade. The fluctuation in the rupee-dollar exchange rate significantly influences the costs of importing gold and silver in India, resulting in varying domestic prices for these precious metals.

Expert Recommendations:

Manoj Kumar Jain, Director-Head Commodity and Currency Research at Prithvi Finmart, advised investors to exercise caution due to high price volatility. He emphasized that gold and silver prices are expected to remain erratic as the market awaits the US inflation data and the outcome of a key FOMC meeting.

City-wise Gold Rates in India on June 10:

FAQs:

1. What caused the decline in gold and silver prices on June 10?

The drop in gold and silver prices was influenced by profit-taking following the Chinese central bank’s halt in gold purchases and the US non-farm employment data released, which led to a surge in the dollar index and US bond yields.

2. What factors should investors consider for gold and silver trading?

Investors should closely monitor the US inflation data, the outcome of FOMC meetings, and any comments by Fed officials regarding interest rate cuts, as these factors significantly impact gold and silver prices.

3. Which support and resistance levels are crucial for gold and silver trading?

According to Manoj Kumar Jain, the key support and resistance levels for gold and silver on June 10 were $2,280 and $28.88 per troy ounce, respectively. In addition, support for international gold was seen at $2,288-2,260 and resistance at $2,332-2,354 per ounce.