Gold prices in India saw a decline for the second consecutive day on October 15, 2024, providing slight relief to buyers. This drop comes as traders anticipate more insights regarding the U.S. Federal Reserve’s approach to potential interest rate cuts, along with geopolitical factors that may influence demand for the yellow metal as a hedge against uncertainty.
Current Gold Prices
24-Carat Gold:
Price: ₹77,400 per 10 grams
Decline: ₹220 per 10 grams
100 Grams Price: ₹7,74,000 (down ₹2,200)
22-Carat Gold:
Price: ₹70,950 per 10 grams
Decline: ₹200 per 10 grams
100 Grams Price: ₹7,09,500 (down ₹2,000)
18-Carat Gold:
Price: ₹58,050 per 10 grams
Decline: ₹170 per 10 grams
100 Grams Price: ₹5,80,500 (down ₹1,700)
Per Gram Prices:
22-Carat Gold: ₹7,095 (down ₹20)
24-Carat Gold: ₹7,740 (down ₹22)
18-Carat Gold: ₹5,805 (down ₹17)
According to Renisha Chainani, Head of Research at Augmont – Gold For All, several factors have contributed to the recent downward trend in gold prices:
US Treasury Bond Rates: There has been a recent spike in U.S. Treasury bond rates, which has affected expectations regarding interest rate cuts by the Federal Reserve. Traders do not anticipate a substantial interest rate decrease in November.
US Dollar Strength: The U.S. dollar surged above the 103 mark, its highest level since August 8, influenced by mixed signals regarding the Fed‘s monetary policy. A strong dollar tends to make gold more expensive for holders of other currencies.
Geopolitical Tensions: Following Hezbollah’s drone attack on an Israeli army installation, which resulted in fatalities, there are concerns about escalating geopolitical tensions. This situation may support precious metals prices, as investors often turn to gold during times of uncertainty.
Given the mixed fundamentals, gold is expected to trade within a confined range of approximately $2,645 (around ₹75,500) to $2,685 (around ₹76,500). Meanwhile, silver has been fluctuating between $30 (approximately ₹88,000) and $32.50 (approximately ₹93,500) for the past month due to similarly mixed market conditions.
This recent decline in gold prices may present an opportunity for buyers, particularly with the festive season approaching and increased demand expected.
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