Gold prices has treading cautiously ahead of US inflation data scheduled to be released later today on June 13. The May headline inflation is expected to drop to 4.1% from 4.9% in April and core inflation could ease to 5.3%. The expectation is that the inflation numbers could make the case for higher interest rates for longer.
On June 14, at the US Federal Reserve's monetary policy review meeting, analysts are expecting rates to remain stable at 5-5.25%, but the street is pencelling in a hike of 25 bps in July.
Latest Gold Rates
In Mumbai, the gold rates on June 13 for 24 carat gold is Rs 6,200 per gram, and for 22 carat gold it is Rs 5,800/gram. 18 carat gold rate is Rs 4,850.
In Ahmedabad, the current gold rates are Rs 61,600 per 10 gram for 24 carat gold and Rs 56,450 per 10 gram for 22 carat gold.
Gold Price Forecast
Looking ahead, market forecasts vary. Citigroup expects gold to average around $1,965 in the near term, while MetalFocus predicts a lower average of $1,890. Commerzbank suggests that if the Fed holds off on rate hikes, gold could trade between $2,000 and $2,050 in the third and fourth quarters. Bank of America has a more bullish projection of $2,100 for gold in the third quarter.
The key events to track this week are the US Federal Open Market Committee (FOMC) meeting on June 13-14, the European Central Bank (ECB) meeting on Thursday, and the Bank of Japan meeting on Friday. These events are expected to have an impact on the precious metals market, influencing future price movements.
Gold prices in Mumbai
| 24ct gold rate | 6200 |
| 22ct gold rate | 5800 |
| 18ct gold rate | 4850 |
| 24ct gold rate | 61600 |
| 22ct gold rate | 56450 |