On Monday, March 18, 2024, gold prices experienced a downturn in India, marking the first weekly decline in four weeks. This decline coincided with various global economic factors, including a surge in the Dollar index, US Yields, shifts in interest rate expectations, and mixed economic data from the United States. Manav Modi, an analyst specializing in commodities and currency at MOFSL, highlighted these factors.
In the Indian market, the price of gold opened at Rs 65,348 per 10 grams on the Multi Commodity Exchange (MCX) and touched an intraday low of Rs 65,180 on Monday. Meanwhile, in the global market, the price of gold remained relatively stable, hovering around $2,147.45 per ounce.
Similarly, silver prices also experienced a decline, with the white metal reaching an intraday low of Rs 75,184 on the MCX after opening at Rs 75,400 per kilogram. Globally, silver prices were recorded in the range of $25.19 per ounce.
The surge in higher-than-expected inflation in the United States has put pressure on the Federal Reserve to maintain higher interest rates, consequently weighing on the price of gold, according to reports.
Moreover, recent actions taken by the Reserve Bank of India (RBI) against certain banks, including SBI, and imposing fines have also contributed to the market sentiment.
Earlier economic indicators from the United States, such as inflation and weekly jobless claims, supported the US dollar, while industrial production and retail sales figures remained lower. As a result, the US dollar index recorded one of its largest weekly gains since mid-January, rising from approximately 102.60 to 103.40. Additionally, US 10-year yields surged from 4.1% to 4.3%, as reported.
Regarding gold prices in India, 24K gold was priced at Rs 65,870 per 10 grams after a decline of Rs 230, with 100 grams of 24K gold retailing at Rs 6,58,700 following a decrease of Rs 2,300. Similarly, the price of 22K gold in India stood at Rs 60,380 for 10 grams after a decline of Rs 210, while 100 grams of 22K gold cost Rs 6,03,800 after a decrease of Rs 2,100. The price of 18 carat gold in India on March 18, 2024, was Rs 49,400 for 10 grams, down by Rs 170, and 100 grams of 18 carat gold was priced at Rs 4,94,000 after a dip of Rs 1,700.
