After reaching several record highs this year, the prices of gold and silver are now showing a downward trend. This decline is largely attributed to the statement from the US central bank, the Federal Reserve, and the subsequent strengthening of the US dollar. This shift in prices could be a significant indicator for investors, especially those considering or already invested in these precious metals.
MCX Price Movements
On the Multi Commodity Exchange (MCX), the price of gold for December delivery witnessed a 0. 17 percent decline compared to the previous session. At 10:14 AM, gold was trading at ₹1,21,297 per 10 grams, while similarly, silver prices also experienced a downturn. Silver for December delivery fell by 0, while 28 percent from its previous session, settling at ₹1,48,421 per kilogram. These movements on the MCX reflect the current economic factors influencing the market.
Key Factors Behind the Decline
The primary and most significant reason for the fall in gold prices is the statement from the US Federal Reserve. The Fed's hawkish comments have strengthened the dollar in the market. When the dollar gains strength, dollar-denominated gold becomes more expensive for holders of other currencies, which in turn reduces demand and price. On top of that, hopes of a US-China trade deal have also contributed to the dollar's strengthening, diminishing gold's appeal as a safe-haven asset. Investors are now shifting towards riskier assets, putting downward pressure on gold prices.
International Market Scenario
Globally, gold prices have also seen a dip. The strengthening of the dollar, driven by uncertainty regarding further interest rate cuts by the Federal Reserve, has put pressure on gold prices in international markets. According to Livemint, international spot gold prices fell by 0. 5% to $4,004 per ounce. Despite this recent decline, gold is still on track for a third consecutive monthly gain, indicating its underlying resilience. US gold futures for December delivery remained stable at $4,016, while 70 per ounce, suggesting some level of stability in the global market.
Today's Spot Gold Prices in Major Cities
Here are the spot gold prices in major Indian cities today:
Delhi Gold Price:
In the capital city of Delhi, the price for 24-carat gold is ₹12,283 per gram. For 22-carat gold, the rate is ₹11,260 per gram, and for 18-carat gold, it stands at ₹9,216 per gram. These prices may vary slightly based on local demand and supply dynamics.
Mumbai Gold Price:
In India's financial hub, Mumbai, the price for 24-carat gold is recorded at ₹12,268 per gram. The 22-carat gold is priced at ₹11,245 per gram, and 18-carat gold at ₹9,201 per gram. Mumbai remains a crucial center for gold trading.
Kolkata Gold Price:
Kolkata also observed similar prices to Mumbai. Here, 24-carat gold is priced at ₹12,268 per gram, 22-carat gold at ₹11,245 per gram, and 18-carat gold at ₹9,201 per gram. Demand for gold in Eastern India is consistently high.
Chennai Gold Price:
In Chennai, a prominent city in South India, gold prices are slightly higher, while the 24-carat gold is available at ₹12,328 per gram, while 22-carat gold is at ₹11,300 per gram, and 18-carat gold at ₹9,420 per gram. Chennai is a significant market for gold jewelry.
Bangalore Gold Price:
The tech city of Bangalore also shows gold prices consistent with Mumbai and Kolkata. The 24-carat gold is priced at ₹12,268 per gram, 22-carat gold at ₹11,245 per gram, and 18-carat gold at ₹9,201 per gram.
This current dip in prices could present an opportunity for investors who might have been hesitant to invest due to previously high prices, while however, given the volatility of the market, experts suggest that investors should exercise caution and closely monitor market trends. Gold and silver prices continue to be influenced by global economic indicators and geopolitical developments.
