Gold Price Chennai, May 16: Big Rally In Yellow Metal Prices For 2nd Day In A Row After 3 Consecutive Dips

Due to speculations on rate cuts, gold prices continued to rise on Thursday for the second day in a row. In Chennai, the cost of 22-karat gold is now Rs 6,795 per gramme, while 24-karat gold is priced at Rs 7,413 per gramme. In Chennai, 100 grams of 22k gold now cost Rs 6,79,500, a spike of Rs 7000 from Rs 6,72,500 yesterday. In Chennai, 100 grams of 24k gold now cost Rs 7,41,300, a jump of Rs 7,700 from Rs 7,33,600 yesterday. In Chennai, 100 grams of 18k gold now cost Rs 5,56,600, a markup of Rs 5,700 from Rs 5,50,900 yesterday.

After three consecutive dips, gold rates in Chennai have been rising over the past two days. In the global market arena, spot gold continued to rise for a second day in a row as the likelihood of this year's Fed rate cut became higher by data on retail sales and the US CPI. Yesterday, the US Dollar Index dropped 0.74% to end at 104.28, while the ten-year US yield dipped roughly 2.32% to 4.344%, while spot gold ended with a gain of 1.35% at $2387.

Commenting on the outlook of global gold price Praveen Singh - Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas said, "Gold is expected to trade with a positive bias with an eye on all-time high of $2431. Support is at $2380/$2350. Interim resistance is at the psychologically crucial level of $2400."

Commenting on gold prediction in the domestic market, the research analysts of the brokerage firm Nirmal Bang said, "Gold prices are expected to rise. One can buy at 72850 with a stop loss of 72650 for the target at 73300-73500."

Gold Rate Prediction India

"Gold may trade in the range of 73300-73800, and Silver also trades in the range of 86400-87200, with a sideways to bullish bias. Gold prices edged higher on Thursday, supported by a softer dollar and lower Treasury yields after data signalled cooling U.S. inflation, bolstering bets for an interest rate cut by the Federal Reserve. U.S. CPI rose 0.3% last month after advancing 0.4% in March and February, suggesting that inflation resumed its downward trend at the start of the second quarter in a boost to financial market expectations for a September interest rate cut," said the commodity analysts of SMC Global Securities Limited.

"Federal Reserve policymakers waiting to see renewed progress on inflation before reducing borrowing costs got some encouraging data on Wednesday with a government report showing inflation eased a bit in April. Chicago Federal Reserve Bank President Austan Goolsbee said he was optimistic inflation would continue to come down," the brokerage firm further stated in a note.

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