05 June,2026 03:28 PM IST | Mumbai | mid-day online correspondent
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Gold prices eased on Friday, June 5, amid uncertainty surrounding a possible peace agreement between the United States and Iran, stalled ceasefire efforts between Israel and Lebanon, growing inflation concerns, and expectations of a potential interest rate hike by the US Federal Reserve.
According to sources, spot gold slipped 0.5 per cent to USD 4,452.20 per ounce by 0225 GMT and has declined nearly 1.8 per cent so far this week. US gold futures for August delivery also fell 0.6 per cent to USD 4,478.50 per ounce.
Market participants are closely watching the release of the US nonfarm payrolls data for May, scheduled later in the day, for indications on the Federal Reserve's future monetary policy decisions.
Other precious metals also witnessed losses. Spot silver dropped 1.4 per cent to USD 72.89 per ounce, platinum fell 1.1 per cent to USD 1,878.68 per ounce, while palladium declined 1.7 per cent to USD 1,298.45 per ounce.
In Mumbai, gold prices mirrored the national trend. The rate of 24-karat gold stood at Rs 1,59,340 per 10 grams, while 22-karat gold was priced at Rs 1,46,062 per 10 grams. The price of 18-karat gold was recorded at Rs 1,19,505 per 10 grams.
The Reserve Bank of India (RBI) on Friday projected real GDP growth for 2026-27 at 6.6 per cent - with Q1 at 6.6 percent, Q2 at 6.3 per cent, Q3 at 6.5 per cent; and Q4 at 6.8 per cent - saying that prolonged global supply chain disruptions, volatility in global financial markets, and weather-related shocks continue to pose downside risks to the domestic growth outlook.
India's manufacturing and services PMI suggest that both sectors continue to be resilient, and business expectations are still positive, said RBI Governor Sanjay Malhotra after the three-day MPC meeting.
He further stated that CPI inflation remains below the target despite global shocks, as the pass-through to domestic prices has been limited.
He highlighted, "While the baseline projections point towards headline inflation firming up towards the upper tolerance level in Q3 2026-27, the impact of the supply shock is expected to wane in Q4 onwards. The underlying inflation pressures continue to remain benign at this juncture."
The Central Bank projected CPI inflation for 2026-27 at 5.1 per cent, with Q1 at 4.2 per cent; Q2 at 5.1 per cent; Q3 at 5.9 per cent; and Q4 at 5.4 per cent.
"Core inflation is projected at 4.7 per cent for 2026-27. These forecasts are subject to upside risks due to global supply chain disruptions, global commodity price shocks, uncertainty about the spatial and temporal distribution of the south-west monsoon and El Nino conditions. Adequate stock of food grains and satisfactory reservoir levels, however, provide some comfort," said RBI Governor Sanjay Malhotra.
