Gold prices in India saw a significant increase on October 16, with traders eagerly awaiting more U.S. economic data to gauge the potential impact of the Federal Reserve’s decisions on interest rate cuts.
The price for 22-carat gold jumped by ₹450, reaching ₹71,400 per 10 grams. For 100 grams of 22-carat gold, prices surged by ₹4,500, now standing at ₹7,14,000.
Meanwhile, 24-carat gold also rose, with a price increase of ₹490 per 10 grams, bringing the rate to ₹77,890. For 100 grams, the precious metal now costs ₹7,78,900, reflecting a ₹4,900 increase.
18-carat gold prices followed the upward trend, increasing by ₹370 per 10 grams to ₹58,420, while 100 grams of 18-carat gold now costs ₹5,84,200 after a ₹3,700 rise.
Renisha Chainani, Head of Research at Augmont – Gold For All, attributed the increase to growing global tensions, especially in the Middle East, which has driven safe-haven flows toward gold. Additionally, expectations of a 25-basis-point interest rate cut in November by the Federal Reserve, alongside cautious easing in policy, are providing further support for gold prices. The softer tone in global equities due to geopolitical threats is also causing investors to flock to gold.
The Biden administration’s pressure on Israel to allow more humanitarian aid into Gaza, with potential penalties like the suspension of U.S. arms transfers, is another factor influencing gold’s upward trajectory. Chainani notes that gold prices are approaching key resistance levels of $2,685 (approximately ₹76,500) and could soon target $2,700 (around ₹77,000) or even $2,750 (close to ₹78,500).
Gold Rates Today for 1 Gram
22-carat gold: ₹7,140 (up ₹45)
24-carat gold: ₹7,789 (up ₹49)
18-carat gold: ₹5,842 (up ₹37)
With global uncertainties and shifting investor sentiment, gold is likely to remain a crucial asset in the coming months as markets keep a close eye on developments in the U.S. and the Middle East.
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