Gold, silver price on May 8: Yellow metal price hovering near Rs 70,000

Gold prices on the MCX hovered around Rs 71,163 per 10 grams on Wednesday, hitting an intraday low of Rs 70,901. 

In the international market, prices maintained a similar trend, hovering around $2,308.97 per ounce. This indicates a certain level of stability in the gold market.

Meanwhile, silver hovered at Rs 82,878 per kg and hit an intraday low of Rs 82,300 on the MCX.  In the international market, the price hovered around $27.13 per ounce.

Navneet Damani, Senior VP – Commodity Research at Motilal Oswal Financial Services, said, "Gold and Silver inched lower, after a positive start of this week, amidst talks regarding cease fire in Middle East and ambiguity regarding rate cuts by the Fed."

Israel launched a series of strikes against Rafah in Southern Gaza, a move that complicated ongoing ceasefire negotiations with Hamas. Israel’s strike on Rafah pointed to an escalation in the ongoing war with Hamas, and presented little scope for de-escalation in the Middle East.

"The move drove up some safe-haven demand for gold. However, continuous efforts and updates regarding the ceasefire have grabbed the market's attention. Gold was also supported by increased speculation over U.S. interest rate cuts following weaker-than-expected nonfarm payroll data reported in the previous week, which weighed on the dollar. But, the greenback found its footing, as it gained some ground in the yesterday's session," said Damani.

Fed official Kashkari mentioned yesterday that interest rates will stay higher for an extended period of time and that he cannot rule out a rate hike. No major economic data points are scheduled this week; however, comments from several Fed officials will be in focus.

Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said, Gold prices remained below Rs 71150 after a recent rally towards Rs 71500. Minor weakness persists, potentially extending towards Rs 70750. With no significant data this week, gold prices may trade within a volatile range of Rs 70000-71750."