24K Gold Price Falls By Rs 1910 In Just 7 Days, What Is Dragging Yellow Metal Lower?

The price of 24K gold has witnessed a sharp drop pf Rs 1910 in just only 1 week and with this this week has emerged as one of the worst weeks for the yellow metal in nearly 2 months. The price of 22K gold in India is Rs 50,400 per 10 grams after a decline of Rs 600. Meanwhile, the price of 22K gold is Rs 46,200 per 10 grams with a decline of Rs 550.

Gold prices have now fallen below the level of March 2022 when the price of 10 grams of 22K gold was recorded at Rs 46,650 (March 31, 2022) and the price of 24K gold was registered at Rs 51,980 per 10 gram (March 31, 2022).

What is dragging the yellow metal prices lower?
It is worth noting that gold remains extremely sensitive to surging US rates. Many people are not aware but interest rates have emerged a major factor that impact prices of gold in India. When interest rates in US go higher, gold rate falls and vice-versa. If rupee falls against US Dollar, gold prices in India per gram become dearer.
Presently, gold prices have been falling due to strengthened US dollar and increased prospects of Federal Reserve continuing with sharp rate hikes to tame inflation.

According to a report. Spot gold witnessed a dip of 0.8% at $1,651.89 per ounce at 10:33 am EDT (1433 GMT). The prices of yellow metal have declined nearly 2.6% only this week. US gold futures shed 1.2% to $1,657.60.

Earlier, data indicated that US consumer prices surged higher than expected for the month of September that may prompt US Fed to announce yet another big rate hike and it may push the gold prices further lower.

The price of 22K gold in Chennai is Rs 46,900 per 10 grams (Rs 51,160/10 gram for 24K) while the price is Rs 46,200 per 10 gram in Mumbai for 22K gold (Rs 50,400/10 grams for 24K). In Kolkata, the price of 22K gold is Rs 46,200 per 10 gram (Rs 50,400/10 gram for 24K) and in Delhi the price of 22K gold is Rs 46,350 per 10 grams (Rs 50,550/10 grams for 24K).