Gold and Silver rate today (May 21, 2024): Precious metal futures trade lower; yellow metal futures near Rs 74,000, white metal futures slips over 1%

Gold and Silver rate today (May 21, 2024): Domestic precious metal futures on Tuesday traded under pressure. While, yellow metal futures were down over half a per cent, white metal futures slipped over 1 per cent. 

MCX gold futures (Jun 5) slipped 0.51 per cent or Rs 382 at Rs 73,985 per 10 grams at the last count. Meanwhile, MCX Silver futures (Jul 5) slumped 1.06 per cent or Rs 1,006 at Rs 94,261 per kg.

"Gold prices have reacted positively in recent days due to expectations of sooner interest rate cuts, following a drop in US inflation data after a long period of sideways to higher rates. This shift has led to speculation that the Federal Reserve might cut rates starting in September. Additionally, Iran's President's helicopter crash prompted a strong push in gold prices on Monday due to fears of renewed tensions between Iran and Israel," said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities

Trivedi added, however, that prices have given up some gains today as no definitive cause for the crash has emerged. Gold is expected to remain volatile, with prices likely to range between Rs 71,000 and Rs 75,000 in the near term.

Meanwhile, COMEX gold in the international market was down 0.61 per cent at $2,423.3.

"Gold is expected to be highly volatile, but is likely to trade with a positive bias in the near term as markets sense that the US Federal Reserve is willing to be excessively hawkish. In this scenario, inflation hedging trade is positive for the yellow metal," said Praveen Singh – Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas

Singh sees support at $2400/$2380 and resistance at $2450/$2475. Further, he suggests buying on dips as a preferred strategy. 

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 73,700, keeping the stop loss at Rs 73,200 and a target price of Rs 74,400. For silver July futures, she recommended buying on the dips at Rs 93,700, with a stop loss of Rs 92,700 and a target of Rs 95,700.

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 21, 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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