Gold Price Chennai, May 23: Big Fall In Yellow Metal Prices, 24k/100 Grams Down By Rs 12,000

Gold lost its shine on Thursday amidst hawkish Fed meeting minutes that show worry about the persistence of inflation and as markets got cautious ahead of the FOMC minutes publication. On May 23, the price of gold in Chennai fell significantly, from Rs 9000 to Rs 12,000 based on the karats of 100 grams of gold. In Chennai, the price of 22-karat gold is now Rs 6,750 per gramme, while the price of 24-karat gold is Rs 7,364 per gramme.

22 k of 100 grams of gold today is at Rs 6,75,000 in Chennai which is a fall of Rs 11,000 from Rs 6,86,000 yesterday. 24k of 100 grams of gold is today priced at Rs 7,36,400 in Chennai which was Rs 7,48,400 yesterday representing a fall of Rs 12,000. Today 18 Carat gold rate per 100 Gram in Chennai is Rs 5,52,900 which was Rs 5,61,900 yesterday representing a fall of Rs 9,000.

"Gold may trade with a bearish bias on hawkish FOMC minutes; however, it is to be noted that the FOMC meeting happened before the release of the US data like nonfarm payroll, ISM services, retail sales, etc. All these data were underwhelming; thus, the impact of minutes may not last long," said Praveen Singh - Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas.

Bullion Outlook Today

"Spot gold is likely to slip further towards $2360 level amid strong dollar and rise in US treasury yields. Yields and Dollar are moving north as recent FOMC meeting minutes showed that most of the policymakers are worried over stickiness in inflation and see rates staying at current level. Meanwhile, sharp fall in gold may be cushioned on expectation of disappointing economic data from US. Additionally, data released since Fed meeting has shown inflation cooling and job growth slowing more than expected. Spot gold is likely to slip towards $2360 level (20-Day EMA) as long as it stays below immediate resistance of $2400 level. A sustain break below $2360 prices may move towards $2340 level," said ICICI Direct Research in a note.

MCX Gold Outlook Today

"MCX Gold June prices is likely to slip further towards 72,300 level ( 20- Day EMA) as long as it stays below immediate resistance of 73,350 level. Strong resistance lies near 74,000 level," said ICICI Direct Research.

Gold Price Outlook Today

According to the brokerage firm Nirmal Bang Securities Pvt. Ltd, "Gold and silver prices are trading slightly lower today on the international bourses. We expect gold and silver prices to trade range-bound for the day, as gold prices are steadied after its biggest one-day drop this month, driven lower by hawkish comments from Federal Reserve officials that US interest rates will need to stay higher for longer to combat stubborn inflation."

Key Events To Watch Today For Gold Price Prediction

According to Praveen Singh, today's US data include weekly jobless claims, new home sales, and manufacturing and services PMIs are likely to influence gold price movements. Traders will look forward to PMIs data out of the Eurozone and the UK, too.

Disclaimer

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