On the morning of November 28, gold prices across India experienced a notable decline, while in the capital city of Delhi, the price of 24-carat gold dropped to ₹127890 per 10 grams. This downward trend wasn't isolated to Delhi but was observed in other major cities as well, indicating a broader market sentiment. The primary factors contributing to this fall include profit booking by investors, a prevailing weak global sentiment, and a reduction in domestic buying activity. Globally, the spot price of gold also saw a dip, settling at $4,158, while 38 per ounce, reflecting the international market's cautious approach and reduced demand for the precious metal.
Factors Influencing Gold Price Volatility
The prices of both gold and silver are Notably influenced by a combination of domestic and global factors. International demand for gold, the strength or weakness of the US dollar, geopolitical tensions,. And the monetary policies adopted by central banks worldwide directly impact the precious metal's valuation. Currently, the market is experiencing pressure from profit booking, where investors sell off their holdings to capitalize on previous gains, and a generally subdued global sentiment. These elements collectively contribute to the observed volatility and downward pressure on gold prices, as lower domestic buying further exacerbates the trend.
Current Gold Rates in Key Indian Metros
The prices of gold varied slightly across different metropolitan areas on November 28. In Delhi, 24-carat gold was priced at ₹127890 per 10 grams, while 22-carat gold stood at ₹117240 per 10 grams, while cities like Mumbai, Chennai, and Kolkata reported 22-carat gold at ₹117090 per 10 grams and 24-carat gold at ₹127740 per 10 grams. Pune and Bengaluru mirrored these rates, with 24-carat gold at ₹127740 per 10 grams and 22-carat gold at ₹117090 per 10 grams. Ahmedabad and Bhopal saw 24-carat gold at ₹127790 and 22-carat gold at ₹117140 per 10 grams, respectively, showcasing the regional variations in pricing, while hyderabad, Jaipur, and Lucknow also reported 24-carat gold at ₹127740 and ₹127890 respectively, with corresponding 22-carat rates.
Anticipation of US Federal Reserve's December Meeting
Amidst the current market dynamics, investor attention is keenly focused on the upcoming meeting of the US central bank, the Federal Reserve, while there is a prevailing expectation that the Federal Reserve might implement further interest rate cuts during its December meeting. The Federal Open Market Committee (FOMC) is scheduled to convene from December 9-10, while a reduction in interest rates by the Fed could have a significant impact on gold prices. Lower interest rates typically make fixed-income investments like bonds less attractive, prompting investors to shift their capital towards safe-haven assets. Such as gold and silver, which could potentially drive up their prices, as capital seeks more secure and yield-generating avenues.
Silver Maintains Strong Upward Momentum
In stark contrast to gold's recent decline, silver prices have continued their upward trajectory. On November 28, silver was trading at ₹173100 per kilogram. Silver, valued for both its industrial applications and its role as an investment asset, has consistently attracted investor interest. Robert Kiyosaki, the renowned American businessman and author of the best-selling book 'Rich Dad Poor Dad,' has offered an optimistic forecast for silver's future. He predicts that silver could soon reach $70 per ounce and potentially climb to $200 per ounce by 2026. This prediction is likely to further fuel investor enthusiasm and reinforce the potential for continued price appreciation in the silver market, making it an attractive commodity for investors.
Summary of Contrasting Trends in Precious Metals Market
In summary, the Indian bullion market on November 28 presented a contrasting picture for precious metals. While gold prices experienced a downturn influenced by global and domestic factors, silver demonstrated solid growth, maintaining its upward momentum. Investors are advised to closely monitor the developments from the Federal Reserve's upcoming meeting and other global economic indicators, as these will be crucial in determining the future direction of both gold and silver prices in the coming days.
