Gold and Silver rate today (June 10, 2024): Yellow metal slides below Rs 71,000 level to two-month low; what should you do?

Gold and Silver rate today (June 10, 2024): Gold futures eased to slide below the Rs 71,000 mark on Monday to a level last seen two months ago. At MCX, gold futures for August delivery fell by as much as Rs 478, or 0.7 per cent, to Rs 70,875 in early trade, while silver futures for July 5 delivery rose by as much as Rs 550, or 0.6 per cent, to Rs 89,639, reflecting a trend witnessed in the global benchmark rates over the past few sessions. 

At 11 am, while gold futures were down by Rs 477 for the day at Rs 70,876, near their intraday low, silver futures were up by Rs 371 at Rs 89,460. 

In the international market, spot gold was barely in the green at $2,296.5 per ounce while silver was up 1.3 per cent at 29.6 per ounce. 

The rupee declined by 10 paise, or 0.1 per cent, to 83.50 against the US dollar in early trade. At the current level, the domestic currency is down about 0.4 per cent so far in 2024. 

The rupee-dollar exchange rate plays a crucial role in determining the cost of importing gold and silver into India. A weaker rupee against the dollar makes imports costlier, leading to higher domestic prices for gold and silver, and vice versa.

"Gold and silver showed very high price volatility and gained in the early trading session on Friday but after news that the Chinese central bank halted its buying in gold after eighteen months triggered profit taking in both precious metals. The US non-farm employment data released on Friday added fuel to the fire and gold and silver crashed vertically. The US non-farm employment surged in May month to 2,72,000 jobs against 1,65,000 in the previous month. The dollar index and the US bond yields surged after upbeat US jobs data and also pressurised gold and silver," said Manoj Kumar Jain, Director-Head Commodity and Currency Research at Prithvi Finmart.

What should gold & silver investors do?

Jain expects gold and silver prices to remain volatile this week ahead of the release of the US inflation data and the outcome of a key FOMC meeting. "Gold and silver could test their support levels of $2,280 and $28.88 per troy ounce, respectively, once again. Gold and silver prices showed strength only when there is a positive comment by Fed officials on interest rate cuts in FOMC meetings," said Jain.

Jain sees support for international gold emerging at $2,288-2,260 and resistance placed at $2,332-2,354 per ounce, and support for the white metal at $28.88-28.40 and resistance at $29.66-30.10 per ounce on Monday.

"At MCX, gold is having support at Rs 70,750-70,300 and resistance at Rs 71,850-72,400 while silver is having support at Rs 87,700-86,300 and resistance at Rs 90,550-92,400. We suggest staying away from gold and silver in today's session (Monday) due to very high volatility ahead of the FOMC meeting," Jain added. 

City-wise gold rates in India (24k and 22k) on June 10

With agency inputs