Gold and Silver Futures Experience Significant Drops

Following a period of profit booking, Gold June futures at MCX have seen a notable decrease, dropping to Rs 93,195 per 10 grams. This marks a reduction of Rs 452 or 0.48%, despite an initial upward trend in precious metals fueled by lower inflation rates.

Similarly, Silver July futures contracts weren't spared, with a decrease of Rs 704 or 0.73%, bringing the price down to Rs 96,063 per kilogram.

Market Movements and Economic Indicators

The domestic and international markets had a positive closure for gold and silver on Tuesday, with Gold June futures ending at Rs 93,647 per 10 grams, a 0.80% increase, and Silver July futures at Rs 96,767 per kilogram, up by 1.49%.

Internationally, both metals rebounded from previous fluctuations after April's cooler U.S. inflation figures were released. The U.S. CPI recorded a 3.2% annual rate in April, slightly above the expected 3.1% but below March's 3.3%.

Expert Insights and Trading Strategies

"The cooling U.S. CPI inflation has pushed the dollar index lower from its highs, providing support for gold and silver prices," noted Manoj Kumar Jain of Prithvifinmart Commodity Research. He also highlighted the impact of geopolitical tensions and trade discussions on silver prices.

For those looking to navigate these volatile markets, Jain recommends focusing on silver acquisitions near Rs 95,800, with a stop loss at Rs 95,100 and a target of Rs 97,200.