• Bond Market signals – Gold and silver prices are trading broadly steady, supported by easing U.S. Treasury yields. Benchmark 10-year yields have declined from around 4.3% to near 4% in recent days. More importantly, real yields (nominal yields adjusted for inflation) have fallen sharply, which reduces the opportunity cost of holding assets like gold.
  • Geopolitical Tensions – Geopolitical tensions remain elevated. The latest round of nuclear talks between the U.S. and Iran concluded without an agreement, with both sides far apart on key issues. The U.S. has increased pressure by deploying additional jets and warships to the region. Ongoing instability in the Middle East and Eastern Europe continues to fuel risk aversion, supporting safe-haven demand for precious metals.
  • Economic Data – On the economic front, markets are closely tracking Federal Reserve signals. Chicago Fed President Austan Goolsbee indicated that rate cuts remain possible if inflation eases, while Governor Stephen Miran has suggested deeper easing in 2026. However, expectations for a June rate cut have fallen to around 50%, and the likelihood of multiple cuts this year has diminished, keeping markets cautious.

Technical Triggers   

  • After achieving the target of $5200 (~ ₹1,60,000), Gold prices are consolidating and building a base for the new bullish momentum towards $5300 (~ ₹1,63,000) and $5400 (~ ₹1,66,000).
  • After achieving the target of $90 (~ ₹2,74,000), Gold prices are consolidating and building a base for the new bullish momentum towards the next resistance level of $92 (~Rs 280,000) and $93 (~ ₹2,85,000).

Dr.Renisha Chainani, Head- Research, Augmont