Gold prices in India experienced a significant drop on Monday, November 11, against a backdrop of global economic instability, pandemic-related uncertainties, and heightened geopolitical tensions. These factors have shaped market movements and investor sentiment, contributing to fluctuations in the price of precious metals. Despite a general uptick in gold jewelry consumption amid economic uncertainty, gold prices have fallen sharply over the past two days, driven in part by a stronger U.S. dollar and rising U.S. treasury yields following recent political developments.
Gold Prices in India: November 11 Overview
Today, the price of 22-carat gold in India is Rs 7,220 per gram, while 24-carat gold is priced at Rs 7,876 per gram. This reflects a notable decrease in value: 100 grams of 22-carat gold now costs Rs 7,22,000, down by Rs 5,500 from the previous rate of Rs 7,27,500. The price of 10 grams of 22-carat gold fell by Rs 550, bringing it to Rs 72,200 from Rs 72,750.
Similarly, the price of 24-carat gold witnessed a significant reduction. The cost of 10 grams dropped by Rs 600 to Rs 78,760, from the prior rate of Rs 79,360. For 100 grams of 24-carat gold, prices fell by Rs 6,000, moving from Rs 7,93,600 to Rs 7,87,600. Prices for 18-carat gold also experienced declines; 10 grams is now priced at Rs 59,070, down from Rs 59,520, a reduction of Rs 450. Meanwhile, the cost of 100 grams of 18-carat gold fell by Rs 4,500, settling at Rs 5,90,700 from its earlier value of Rs 5,95,200.
Global Trends in Spot Gold and Other Precious Metals
Globally, spot gold prices also saw a downward trend. By 0306 GMT on Monday, the price of spot gold had decreased by 0.5%, settling at $2,669.22 per ounce. This marked the second consecutive day of price declines, spurred by investor caution as they await key U.S. economic data and upcoming commentary from Federal Reserve officials. The uncertainty has prompted fluctuations across commodities markets, including U.S. gold futures, which fell 0.7% to $2,675.90.
Other metals showed mixed performance: palladium rose by 0.5% to $993.74 per ounce, while platinum increased by 0.3% to $971.11. Conversely, spot silver prices fell 0.4%, trading at $31.17 per ounce.
Silver Prices in India: A Day of Declines
The silver market in India also reflected a downward trajectory. Currently, silver is priced at Rs 93 per gram, equating to Rs 93,000 per kilogram. The cost of 100 grams of silver declined by Rs 100, falling from Rs 9,400 to Rs 9,300. Similarly, the price of 1 kilogram of silver saw a significant drop of Rs 1,000, moving from Rs 94,000 to Rs 93,000 within a single day.
Analysis and Expert Opinions on Gold Prices
Motilal Oswal research analysts commented on the current state of the gold market, noting that demand for physical gold in India had shown signs of weakening, despite some interest from buyers in Japan and Singapore. “There is no major economic data expected today, but focus this week will turn to key U.S. economic indicators, including the Consumer Price Index (CPI), Producer Price Index (PPI), retail sales, and industrial production data. We expect domestic gold prices to trade in the range of Rs 76,800 to Rs 77,800,” said the analysts.
Nirmal Bang Securities Pvt. Ltd. provided further insights, highlighting the recent volatility in global gold markets. “Gold and silver prices are trading slightly lower on international exchanges. We anticipate that these prices will remain range-bound to slightly lower throughout the day, following a week marked by volatility due to a surging dollar post-Donald Trump’s election victory and a Federal Reserve rate cut,” said their technical analysts.
MCX Gold Market Insights
In the domestic futures market, the Multi Commodity Exchange (MCX) saw gold trading within a narrow range. The December 2024 gold contract on the MCX closed with a “doji” candle formation on the daily chart, which suggests consolidation may continue. Analysts from Way2Wealth Brokers Private Ltd. noted, “We expect MCX gold to potentially move towards the levels of Rs 78,330, Rs 79,200, Rs 80,000, and Rs 80,500 on the higher side. However, on the downside, key support levels are seen at Rs 76,365 and Rs 75,700. Technically, the short-term trend for gold indicates consolidation with a positive bias. Given the high volatility expected ahead of key U.S. inflation data, traders are advised to trade cautiously and employ strict stop-loss measures.”
Conclusion
The drop in gold and silver prices highlights the influence of global economic and political developments on precious metal markets. With upcoming U.S. economic data expected to shape future market behavior, analysts are closely monitoring these indicators for their impact on both international and domestic precious metal trends. The immediate future suggests a period of cautious trading with a focus on key support and resistance levels in both spot and futures markets.
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