Gold prices in India continued to see a downward spiral with more than 1 per cent decline after touching 1-month lows in previous session. Price are down for the fifth straight session on November 14 and touched the lowest level in eight weeks. In India, the yellow metal has now sipped below Rs 73,971/10 gm levels.
The Spot Gold price saw a decline of 0.6 per cent at $2,559.39 per ounce, after hitting its lowest since September 19 also earlier in the session US gold futures fell 0.9 per cent to $2,564.
Gold Prices in International Markets
The factors to be considered for the fall are the US dollar and rising Treasury yields amid uncertainty and rate cuts by the US Federal Reserve. The US Dollar Index touched 106 Thursday morning, showing an increase of 0.22 percent from the previous close. The US Consumer Price Index rose 0.2 per cent on the month, in line with estimates to 2.6 per cent year-on-year, from 2.4 per cent in September. The reason for the continued weakness could be also ascribed to the U.S. Producer Price Index and jobless claims data.
Gold is known for being a hedge against inflation and a safe asset for investors. However, higher interest rates have reduced investors’ interest in holding it for a long time. Due to future rate cuts, citing potential risks to inflation, Federal officials would also be cautious.
Rahul Kalantri, VP Commodities, Mehta Equities, said“Gold and silver continue to decline amidst the relentless rally of the U.S. dollar and cryptocurrencies. U.S. 10-year bond yields have also surged past the 4.40% mark, further discouraging investors from holding precious metals. The dollar index crossed 106.40, nearing its highest levels in almost a year, following Donald Trump’s victory in the U.S. Presidential election. Meanwhile, Bitcoin reached an unprecedented $93,000 per coin, with heightened investor enthusiasm for cryptocurrencies curbing the demand for gold and silver. The U.S. CPI inflation data, released on Wednesday, aligned with expectations, reporting a 2.6% year-on-year rise in October, up from the previous 2.4%. Core CPI also met forecasts. While inflation saw a slight uptick, it remains within manageable levels and is not expected to alter the Federal Reserve’s current monetary easing stance. “
Gold prices Last week Vs Gold price in last 1 year
Gold was trading at Rs 77,570 on November 8, 2024 a week ago and saw a decline 0f 4.6 per cent slipping to Rs 73,970/10 gm levels. This is primarily on the back of Donald Trump’s victory in US elections, projections about Trump Policies and the interest rate cuts by the US Fed.
In the last one year gold prices saw an upward movement from Rs 60,350 on November 15, 2023, to Rs 73,970 on November 14, 2024 clocking a gain of almost 22 per cent. The reason behind the rally is mostly geopolitical tensions such as escalating conflict in West Asia and investors worrying about supply diruptio as a result of the Israel-Iran war. The continuing Russia-Ukraine war has also supported Gold prices- a popular safe haven investment.