Gold Price Falls; Look at Factors Governing the Rates This Week

Subscribe to GoodReturns
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

    Gold price in Indian cities fell by close to 1 percent on Wednesday resulting in 10 grams of 22 carats to be priced at Rs 29,100 in Delhi in the morning hours.

    Spot gold was at $1,277.78 an ounce, close to its one-year low as per a Reuters report. It fell by one percent on Tuesday.

    Gold Price Falls; Look at Factors Governing the Rates This Week

    PTI reported that the gold futures fell by Rs 29 to Rs 29,700 per 10 grams as participants cut down bets amid a weak global trend. At the Multi Commodity Exchange, gold prices for delivery in August declined by Rs 29, or 0.10 percent, to Rs 29,700 per 10 grams in a business turnover of 1,255 lots, it further said.

    The US dollar's volatility and global geopolitical tensions have influenced the price of gold since the beginning of the year. The precious metal, that is considered as a safe haven at times of uncertainties, however, did not surprisingly gain from the trade war between the US and its allies when most global financial markets tumbled.

    Gold prices are driven by the strength of the US dollar and currently, the American currency is standing stronger after the US Federal Reserve Chairman Jerome Powell's US economic outlook reinforced views the central bank is on track to steadily hike interest rates. When the US treasuries are stronger, it erodes the appeal of the yellow metal as a safe haven among investors and also makes it an expensive affair for buyers in currencies other than the dollar, reducing the demand.

    There has also been a fall in demand for gold in China, the biggest consumer of gold in the world as its local currency was weakened against the American greenback, affected by the trade war.

    The monetary policy statement to be released by the Reserve Bank of India on August 1 will also govern the Indian rupee's position against the dollar.

    Read more about: gold
    Story first published: Wednesday, July 18, 2018, 14:44 [IST]
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'
    India's LARGEST EVER political poll. Have you participated yet?

    Find IFSC

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more