Gold prices today: Metal dips on MCX, slips below $2,350 an ounce globally; check local rates

Gold prices edged lower on India's Multi Commodity Exchange (MCX) on Tuesday, May 28, a day after climbing by around 1%. A similar trend was also seen in the global market, where spot gold rescinded below the $2,350 an ounce mark ahead of the release of US inflation data.

Gold futures for June delivery were trading at Rs 71,809 per 10 gram at around noon, down 0.3% as against the last closing price. The futures for August delivery dipped nearly 0.4% to trade at Rs 72,080 per 10 gram.

In the international market, spot gold was trading at $2,344.4 an ounce, down 0.28%, at 0636 hours GMT. The metal's futures for June delivery were down 0.4% at $2,344.5 on Comex. The prices are expected to impacted later this week, with the release of retail inflation numbers by the United States on Friday.

Notably, gold prices had peaked to an all-time high of $2,450 an ounce in Asian trade on May 20 due to the geopolitical jitters caused by the death of Iranian President Ebrahim Raisi in a helicopter crash. However, the prices subsequently receded as Tehran confirmed the death as an accident.

Gold prices softened further after the minutes of the Federal Open Market Committee (FOMC) meeting, released on May 22, indicated that the rate cut cycle in the United States may not be initiated soon. With disinflation yet to gain momentum, the Fed may be more cautious before slashing down the lending rates, which are at a historic high of 5.25%-5.5%.

What are the gold rates in Indian cities?

As per the retail market rates tracked by Upstox, 10 gram of 24 karat gold was trading at the following value in metro cities:

• Mumbai: ₹74,333 (up 1.18%)
• New Delhi: ₹73,180.00 (down 0.10%)
• Chennai: ₹73,613 (up 0.39%)
• Kolkata: ₹73,325 (down 0.20%)
• Bengaluru: ₹74,045 (up 0.29%)

As a safe haven asset, gold has been gaining strength amid the global uncertainties. The metal has rallied by around 10% in 2024 so far. According to analysts, the rally is likely to continue in the medium-to-long term. As per a forecast released by Citi Research last month, gold may peak to $3,000 an ounce in the global market in the next 6-18 months.