Gold Price Drops to Rs 73,700 per 10 grams - HDFC Securities
Apr 18, 2024 18:00
Gold prices fell in India, trading at Rs 73,700 per 10 grams on Thursday, driven by a decline in global markets. Silver remained flat at Rs 86,500 per kg.
New Delhi, Apr 18 (PTI) Gold prices fell from an all-time high level and traded lower by Rs 250 at Rs 73,700 per 10 grams in the national capital on Thursday amid a decline in the yellow metal's rates in the global markets, according to HDFC Securities.
The precious metal had settled at Rs 73,950 per 10 grams in the previous session.
"Spot gold prices (24 carats) in the Delhi markets are trading at Rs 73,700 per 10 grams, down by Rs 250 against the previous day close," Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.
However, silver prices remained flat at Rs 86,500 per kg.
Commodity markets were closed on Wednesday on account of Ram Navami.
In the international markets, spot gold at Comex was trading at USD 2,375 per ounce, down by USD 13 from the previous close.
Gold prices fell on Thursday on an indication that the US Federal Reserve will take longer than expected to lower interest rates after a hawkish comment from the US Federal Reserve Chair Jerome Powell, Gandhi said.
However, silver was marginally up at USD 28.25 per ounce. In the previous session, it had closed at USD 28.20 per ounce.
"Ongoing geopolitical tensions in the Middle East are expected to keep gold volatile. In the event of an escalation in the situation, the dollar may find support, dampening gold prices.
"Conversely, if tensions ease between Iran and Israel, gold could experience profit booking, potentially driving prices down towards Rs 69,500," Jateen Trivedi, VP Research Analyst of Commodity and Currency at LKP Securities, said.
On Tuesday, Fed Chair Powell said that the central bank has been waiting to cut its main interest rate, which is at its highest level since 2001, as it needs more confidence that inflation is heading sustainably down to its 2 per cent target.
High rates hurt prices for all kinds of investments and raise the risk of a recession in the future.
"The recent data have clearly not given us greater confidence and instead indicate that it's likely to take longer than expected to achieve that confidence," Powell said, referring to a string of reports this year that showed inflation remaining hotter than forecast.
He suggested if higher inflation does persist, the Fed will hold rates steady "for as long as needed". But he also acknowledged that the Fed could cut rates if the job market unexpectedly weakens.
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