Gold Rate Today: A Significant Slide

Gold prices have seen a notable decline, dropping to Rs 96,900 per 10 grams as investors globally turn their attention towards the upcoming US Federal Reserve policy announcement. This shift comes amid growing optimism over potential US-China trade discussions, which has somewhat eased the demand for safe-haven assets.

Market Reactions and Predictions

At 10:01 am, MCX June gold futures were trading at Rs 96,927 per 10 grams, marking a decrease of Rs 564 from the previous close. Similarly, June silver futures experienced a minor decline. Internationally, spot gold decreased by 1.2% to $3,388.67 an ounce, following a nearly 3% increase in the previous session.

Investors Eye US Fed Policy

All eyes are on the Federal Open Market Committee (FOMC) meeting scheduled for later today, where the U.S. central bank is expected to maintain current interest rates. Market participants are anticipating rate reductions of 80 basis points within the year, starting in July.

Expert Insights

"Gold prices dipped below $3,380/oz following reports of upcoming U.S.-China trade talks, which eased safe-haven demand," said Rahul Kalantri, VP Commodities, Mehta Equities. He added, "Investors are watching Fed Chair Powell's statement closely for rate clues amid political pressure to loosen monetary policy, which may shape gold's near-term trend."

Looking Ahead

The precious metal traditionally performs well during periods of low interest rates and is seen as a hedge against economic and political uncertainty. With silver, platinum, and palladium also experiencing declines, the metals market remains volatile as investors await further developments.