Market Performance
Gold price today witnessed a dip in the domestic futures market, mirroring the global trend. On the Multi Commodity Exchange (MCX), June 5 contracts fell by 0.41% to ₹92,790 per 10 grams around 9:15 AM.
This decline aligns with international gold prices, which are headed for their steepest weekly drop in six months.
Main News
Several factors have contributed to the softening of the gold price today, including:
- Volatility in the US dollar against other major currencies.
- Reduced trade war tensions after the US struck agreements with the UK and China.
- Diminished hopes of aggressive rate cuts by the US Federal Reserve.
This month, these developments have led to a wave of profit booking in the bullion market.
Global and Domestic Trends
- Spot gold prices in India have dropped by 2% in May (up to the 15th).
- Despite the short-term decline, gold remains up over 21% in 2025.
In the international market, easing geopolitical tensions and stabilizing equity markets have also reduced the appeal of gold as a safe-haven asset.
Additionally, bond yields in the US have risen, further pressuring the yellow metal.
Company Details
While no specific company is in focus, broader market factors are influencing the movement in the gold price today:
- US CPI (Consumer Price Index) rose 0.2% in April, after a 0.1% dip in March.
- On an annual basis, CPI increased 2.3%, marking the smallest gain since February 2021.
- These numbers indicate that inflation may moderate, reducing the urgency for the Federal Reserve to cut interest rates.
Summary of the Article
To summarise, the gold price today has come under pressure due to:
- Fading global uncertainties.
- Volatility in the dollar index.
- A change in investor sentiment moving away from traditional safe-haven assets.
Although gold prices have seen a short-term correction, the metal continues to deliver strong year-to-date returns, making it a key asset to monitor for price-sensitive sectors and buyers.
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