Breaking News: Gold Prices Drop by Rs 3,500 Today – Silver also Down by Rs 3,300 in June

**Key Takeaways:**
– Gold and silver prices have fallen due to a rebound in the dollar index and hawkish Fed comments on rate cuts.
– Despite the recent dip, gold is up 12% this year due to safe-haven demand and central bank purchases.
– The Federal Reserve indicated it expects only one rate cut this year, despite signs of easing inflation.

**Gold and Silver Price Movement:**
Gold August Futures on MCX fell by Rs 3,300 to Rs 71,258 per 10 grams from its peak of Rs 74,777 per 10 grams on May 20. Silver July contracts have also dipped by Rs 3,300 in June so far to Rs 88,271/kg.

**Factors Contributing to Price Movement:**
– US producer prices fell unexpectedly in May, suggesting easing inflation.
– The Federal Reserve indicated it expects only one rate cut this year.
– Hawkish Fed comments on rate cuts contributed to the dip in gold and silver prices.

**Expert Recommendations:**
– Manoj Kumar Jain recommends buying gold on dips around 70,850 with a stop loss of 70,600 for a target of 71,300.

**Gold and Silver Ranges by Manoj Kumar Jain:**
– Gold support: 70,850-70,600, resistance: 71,330-71,550.
– Silver support: 87,200-86,300, resistance: 88,650-89,400.

**Expert’s Comment:**
“The U.S. CPI inflation eases in May and the U.S. PPI data released on Thursday also indicates that the inflation is easing in the U.S. but the U.S. Fed remains hawkish and surprised markets. However, the U.S jobless claims surged once again in the last week to 2,42,000 against expected claims of 2,25,000 and could support gold and silver prices at lower levels,” said Manoj Kumar Jain of Prithvi Finmart Commodity Research.

**FAQ:**
1. Why did gold and silver prices fall?
– Gold and silver prices fell due to a rebound in the dollar index and hawkish comments from the Federal Reserve on rate cuts.

2. Is gold still performing well despite the recent dip?
– Yes, gold is still up about 12% this year due to safe-haven demand and purchases by central banks and Chinese consumers.

3. What recommendations do experts have for trading gold?
– Manoj Kumar Jain recommends buying gold on dips around 70,850 with a stop loss of 70,600 for a target of 71,300.