Gold rises as dollar sheds gains against peers

During the month of May, gold prices experienced a wide range, fluctuating between $2,051 and $1,940 per ounce.

Gold prices in the international market with slight gain, showing resilience in the face of a modest decline in the USD and US treasuries. The dollar index fell below 104, contributing to the upward movement of gold prices. Additionally, the US ISM service PMI revealed sluggish growth, further bolstering the appeal of gold as a safe-haven asset.

During the month of May, gold prices experienced a wide range, fluctuating between $2,051 and $1,940 per ounce. As we enter June, the price range has narrowed slightly, with current levels ranging between $1,977 and $1,947 per ounce.

'Investors remain cautious'

Investors wait for direction and are closely monitoring the upcoming US Federal Reserve meeting, which is scheduled for June 13-14. The probability of the Fed pausing rates stands at 78%, providing support to the gold market. If the Fed indeed decides to hold rates steady, it would likely contribute to the positive momentum for gold prices.

The weight of higher rates in the US, UK, and Europe continues to cast a shadow on the precious metals market. Experts are recommending that investors remain cautious as they assess the impact of these elevated rates, making gold an attractive option for diversification and protection against potential economic uncertainties.

Overall, the recent developments in the USD, treasuries, and central bank policies indicate a favorable environment for gold prices, encouraging investors to consider the precious metal as part of their investment strategy.

India markets to take cue from RBI Policy meet on June 8. Both central banks could bend toward a pause in rate hikes.

India Gold Prices