Gold and Silver rate today (May 16, 2024): Yellow metal futures subdued; white metal breaches Rs 87,000 mark

Gold and Silver rate today (May 16, 2024): Domestic yellow metal futures on Thursday were subdued with a negative bias, while the white metal futures surpassed Rs 87,000. 

MCX gold futures (Jun 5) were flat with a negative bias at Rs 73,062 per 10 grams at the last count. Meanwhile, MCX Silver futures (Jul 5) were up 0.52 per cent or Rs 449 at Rs 87,314 per kg.

"Gold prices remained stable. This stability followed a lower-than-expected CPI in the US, indicating a potential easing of inflationary pressures. While gold prices maintain a positive stance overall, some minor profit booking may occur from higher levels, especially as buying driven by the anticipated CPI event appears to have been priced in," said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.

Meanwhile, COMEX gold in the international market was down 0.22 per cent at $2,389.7.

"Overall the momentum favors buyers on plunging yields and the dollar index, while most technical indicators also remain moderately bullish, with the path of least resistance being upward for the day. On the upside resistance could persist around USD 2400 – 2417 range," said Anand Rathi's Qureshi.

Why did silver futures rally in trade today?  

"Silver prices soared to unprecedented levels, surpassing 87,000 in MCX, driven by a weaker dollar and declining Treasury yields. The uptick in silver prices followed reports of slowing US inflation, fueling expectations of a Federal Reserve interest rate cut in September. Demand for silver remains robust, especially in the electric vehicle (EV) and photovoltaic sectors, as consumption for EVs continues to rise, contributing to the bullish trend in silver markets," said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.

Should you invest in gold now?

Neha Qureshi, Senior Technical and derivative Research Analyst, Anand Rathi Commodities & Currencies recommended buying gold June futures on dips at Rs 73,000, keeping the stop loss at Rs 72,600 and a target price of Rs 73,500. For silver July futures, she recommended buying on the dips at Rs 87,000, with a stop loss of Rs 86,000 and a target of Rs 89,000.

Here's a list of indicative spot gold prices in some of the major cities in the country: 

City-wise gold rate (24k) in India (May 16, 2024)

(Disclaimer: These are indicative prices collected from trusted sources. Investors are advised to check prices with their jeweller before acting on the information.)

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