Gold rates and silver rates in India could be impacted sharply on June 10, due to deep selling pressure in the international bullion market.
Spot gold collapsed below $4,200 per ounce and spot silver dropped by nearly 2% ahead of US CPI inflation data, which is scheduled later on Wednesday.
Market is estimating the US inflation rate to climb to 4.2% in May, which could be its highest level in three years, owing to the global energy crisis.
Also, as per Trading Economics data, the latest escalation has cast doubt on the durability of a fragile ceasefire and the prospects for a broader peace agreement, while extending the near-complete closure of the Strait of Hormuz. Rising energy costs linked to the conflict have heightened fears of persistent inflation and the possibility of further central bank tightening, weighing on non-yielding assets such as gold. Meanwhile, investors looked ahead to the release of US inflation figures for fresh clues on the Federal Reserve’s policy path. Stronger-than-expected US employment data also strengthened expectations that the Fed could raise interest rates before the end of the year.
Currently, crude oil prices are down marginally. Brent Crude is trading above 92 per barrel and US WTI Crude Oil Futures is near 89 per barrel. Majority of commodities are in red today. On the other hand, US dollar strengthened to around 100 mark, due to the renewed hostilities in Middle East.