Gold Prices In US, May 17: Yellow Metal Rates Hold Stable; Set For Second Weekly Gains

Gold prices are poised for a second straight weekly climb, buoyed by recent US inflation figures stoking speculation of potential interest rate cuts by the Federal Reserve. As of 0236 GMT on Friday, spot gold edged up by 0.1% to $2,379.14 per ounce, extending its weekly gain to 0.7%. Meanwhile, US gold futures remained steady at $2,383.20.

The weakening Dollar, down 0.6% against its counterparts for the week, has rendered gold more affordable for investors using other currencies. This favourable exchange rate dynamic has contributed to the precious metal's upward trajectory.

On the domestic front, May 16th saw stability reigning in the gold market, with both 22-carat and 24-carat gold prices maintaining their course. Noteworthy was the unaltered price of 10 grams of 22-carat gold at $725, while its 24-carat counterpart stood firm at $770. Broader measurements, such as 100 grams of both categories, mirrored this stability, holding steady at $7,250 and $7,700, respectively. Prices for 10 grams of 18-carat gold and 100 grams of the same category remained unchanged as well, at $593 and $5,930, respectively.

Although recent data indicating a cooling inflation trend brought some relief to the US Federal Reserve, policymakers have yet to publicly alter their stance regarding the timing of anticipated rate cuts, a move investors widely anticipate to commence this year. This cautious approach stems from the understanding that while gold traditionally serves as a hedge against inflation, higher interest rates increase the opportunity cost of holding onto non-yielding assets like gold.

In parallel, spot silver experienced a marginal decline of 0.2% to $29.53 per ounce, following its recent surge to a more than three-year high. Palladium, on the other hand, retreated by 1.1% to $982.77. In contrast, platinum exhibited resilience, advancing by 0.3% to $1,060.15 after reaching its highest levels since May 12, 2023, in the preceding session. For the week, platinum has recorded a gain of about 7%.

Gold prices in India saw a reversal today following a two-day rally, spurred by stagnant US jobless claims data that exceeded market expectations. On Friday, 22-carat gold witnessed a decline of Rs 250, settling at Rs 67,600 per 10 grams, while 100 grams of 22k gold dropped by Rs 2,500 to Rs 6,76,000. Similarly, 24-carat gold prices slipped by Rs 270 to Rs 73,750, with 100 grams of the precious metal recording a dive of Rs 2,700 to Rs 7,37,500.

In parallel, 18-carat gold prices also experienced a downturn, sliding by Rs 200 to Rs 55,310, while 100 grams of 18k gold became more affordable by Rs 2,000, marking Rs 5,53,100.

Meanwhile, silver prices maintained stability on May 17, 2024, following a significant surge of Rs 1,500 on May 16. Presently, 1 kilogram of silver in India is priced at Rs 89,100, while 100 grams of silver are quoted at Rs 8,910.

As the market continues to digest economic indicators and speculate on central bank actions, the precious metals landscape remains dynamic, offering opportunities for investors to navigate amid shifting trends and sentiments. With gold prices eyeing another weekly gain amidst inflation data and expectations of Federal Reserve policy adjustments, the coming days promise to be pivotal for both the precious metals market and the broader economic outlook.