Gold and Silver Prices Take a Hit

In a surprising turn of events, gold June futures at MCX have seen a significant decline, dropping by Rs 7,900 from their peak of Rs 99,358 per 10 grams. This downturn was highlighted during Thursday's trading, reaching an intraday low of Rs 91,461 per 10 grams, marking a decrease of Rs 804 or 0.97%.

Market Sentiment Shifts

The ongoing U.S. and China trade negotiations have notably altered the sentiment in the bullion markets, prompting traders and investors to secure profits by closing their long positions. Silver July futures mirrored this trend, trading 1.06% lower with a decline of Rs 1,011 at Rs 94,455 per kilogram.

Global Financial Markets React

Both precious metals failed to maintain their previous session's gains, with gold June futures settling at Rs 92,265 per 10 grams, a 1.48% drop, and silver July futures ending at Rs 95,466 per kilogram, down by 1.34%. The decrease in safe-haven demand, influenced by US-China trade discussions and global financial market risk aversion, has been a key factor.

Expert Insights

"Gold and silver prices also plunged amid easing U.S. CPI inflation in April and faded chances of Fed rate cuts in June," noted Manoj Kumar Jain of Prithvifinmart Commodity Research. Jain also provided expected price ranges for gold and silver, advising caution in initiating new positions during this volatile period.