Gold and silver prices today: Gold inches higher after biggest weekly drop, silver down 6.26% in June

Gold prices on the Multi Commodity Exchange (MCX) opened lower on Friday at Rs 58,136 per 10 grams and hit an intraday low of Rs 58,096. In the international market, prices hovered around $1,914.10 per troy ounce. Meanwhile, silver opened on Friday at Rs 67,784 per kg and hit an intraday low of Rs 67,531 on the MCX. The price hovered around $22.14 per troy ounce in the international market.

Anuj Gupta, Vice President of IIFL Securities, said, "Yesterday gold prices closed lower by 0.88% 58196 levels on the back FOMC statement that they will increase interest rates this year. They are also saying that the target of 2% inflation is still far, and it will take time to achieve. In the international market, it is trading at $1911 levels per ounce.

He sees technically strong support at 57800 levels and then 57500 levels, resistance at 58300 and then 58700 levels. For today One can sell around 58300-58400 levels with the stop loss of 58700 and for the target of 57800 to 57500 levels. Gold may test $1900 levels in international markets.

Silver 

Ytd -1.03%, -713

Mtd -6.26%, -4511

Gold 

Ytd 5.62%, 3091

Mtd -3.45% , -3075

The BoE raised interest rates by 50bps, double what experts predicted, saying it needed to act against "significant" indicators that British inflation would take longer to fall. U.K.'s main interest rate is now at 5%. Ease off in the market uncertainty and further rate hike expectations sharply weigh the gold and silver prices. Meanwhile, Japan's core consumer prices in May rose 3.2% from a year earlier, data showed on Friday, while manufacturing and service activity slowed. "Focus today will be on the preliminary manufacturing and service PMI data from major economies," said Manav Modi, Analyst, Commodity and Currencies, MOFSL.

He added, "Gold is on track for its biggest weekly drop since February as prospects of additional interest rate hikes by the U.S. Federal Reserve this year weighed on bullion's appeal. In his second day of testimony, Governor Powell said the U.S. central bank would move interest rates at a 'careful pace' from here as policymakers edge towards an end point for their historic round of monetary policy tightening. U.S. jobless claims, meanwhile, held steady at a 20-month high last week, potentially signalling a softening labour market in the face of the Fed's aggressive rate hikes."