Gold plunges Rs 1,050 to Rs 73,550/10 g

   NEW DELHI, May 23 : Extending the downside for the second straight session, gold prices sharply tumbled by Rs 1,050 to Rs 73,550 per 10 grams in the national capital on Thursday amid a decline in precious metal rates globally.
  Gold slid sharply following the release of the Federal Reserve’s hawkish meeting minutes, which indicated that the US Fed officials are in no rush to cut rates, with “many” questioning whether a higher-for-longer policy is restrictive enough, according to HDFC Securities.
The yellow metal had settled at Rs 74,600 per 10 grams.
In addition, silver prices also plummeted by Rs 2,500 to Rs 92,600 per kg. It had closed at Rs 95,100 per kg in the previous session.
“Spot gold prices (24 carats) in the Delhi markets are trading at Rs 73,550 per 10 grams, down by Rs 1,050, taking bearish cues from the overseas markets,” Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.
In the international markets, spot gold at Comex was trading at USD 2,375 per ounce, down USD 42 from the previous close.
Silver also trading lower at USD 30.80 per ounce. In the previous session, it had finished at USD 31.75 per ounce.
“Gold prices are down more than 3 per cent from an all-time high of Rs 74,442 hit earlier in the week, weighed by profit-booking as selling accelerated after prices again failed to sustain above USD 2,400 per ounce in the overseas market.
“The minutes of the Fed’s last meeting suggested that rates are likely to stay higher for longer, which have pushed the US dollar and US treasury yields higher,” Pranav Mer, VP of Research (Commodity & Currency) at BlinkX and JM Financial, said.
The two-day US Fed’s Federal Open Market Committee (FOMC) meeting minutes, released on Wednesday, assessed that the committee have decided to maintain the interest rate.
The US Fed FOMC in a summary said, “Participants noted that they continued to expect that inflation would return to 2 per cent over the medium term.
“However, the recent data had not increased their confidence in progress toward 2 per cent and, accordingly, had suggested that the disinflation process would likely take longer than previously thought.”
According to Praveen Singh, Associate VP of Fundamental Currencies and Commodities at Sharekhan by BNP Paribas, traders will closely monitor the upcoming macroeconomic data, including new home sales, and manufacturing and services Purchasing Managers’ Index (PMIs) from major economies, which will further provide direction to the gold prices. (PTI)