Gold rates fall ₹2,000 in three months, all eyes on festive demand in India
Premium- Gold has been under pressure after Fed sharply hiked interest rates earlier this month
Gold prices in India today edged higher in tandem with a global rise in rates of precious metals. MCX gold futures rose 0.23% to ₹50300 per 10 gram but were down ₹2,000 so far in the July-September quarter. Silver rates today jumped 1.3% to ₹56898 per kg.
International gold prices edged higher today but was headed for its biggest quarterly decline since March last year. Spot gold rose 0.7% to $1,671.68 per ounce, supported by a weaker US dollar. On a quarterly basis, gold fell 7.4%, its worst since the first quarter of 2021. The dollar index, which earlier this week rose to 20-year highs, fell to one-week low, making gold less expensive for buyers holding other currencies.
Spot silver rose 1.6% to $19.12 per ounce, while platinum jumped 1.1% to $874.26. Both metals were headed for their second straight quarterly decline.
“COMEX gold is trading higher in line with softer US Dollar Index and steady US treasury yields. Gold had slipped to more than two-year lows earlier in the week when dollar had fresh two decade high near 114.5 pushing gold prices towards $1600/oz. However, sharp dollar weakness in the last two sessions has pushed the bullion higher. We expect gold prices to trade sideways to higher as markets remain cautious ahead of key inflation figures from the Eurozone," said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.
Gold has been under pressure after Fed sharply hiked interest rates earlier this month while also signalled further monetary policy tightening, leading to a spike in US bond yields. Although gold is considered a safe bet in times of economic and political uncertainty, rate hikes tend to dull the appeal of bullion, which yields no interest.
Some analysts also hope that festive season demand for gold in India would also help support prices.
MINT PREMIUM See All
Risk appetite somewhat returned to global markets today with European stocks rising along with with government bonds, signaling a potential recovery at the end of a tumultuous week in markets. Fears of global recession are mounting as the threat of higher rates saps growth. The dollar weakened while the pound rose as investors weighed risks emanating from the debt crisis gripping the UK. (With Agency Inputs)
Catch all the Commodity News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less