Big Drop In Gold Prices Of Bangalore; 24/100 Grams Dips By Rs 8,700; 10 Grams Below Rs 70K; Silver Falls Too

Gold prices in Bangalore witnessed a sharp fall on August 6th after no change for two consecutive days. Silver as well, witnessed a sharp decline. On Tuesday, 24K of 10 grams slipped below the Rs 70,000 mark, while its 100 grams nosedived by Rs 8,700 in a single day. 22K of 10 grams also erased its Rs 64,000 mark. While MCX gold futures are trading volatile.

International gold prices are in a volatile trend this week, as financial markets panic on potential US recession with expectations of a rate cut in September by the Federal Reserve still on cards.

Gold Prices In Bangalore On August 6:

24K Gold Prices: 100 grams gold dipped by Rs 8,700 to Rs 6,97,100, while 10 grams slipped by Rs 870 to Rs 69,710, and 8 grams gold shed Rs 696 to Rs 55,768. Also, 1 gram is down by Rs 87 to Rs 6,971.

22K Gold Prices: 100 grams here dropped by Rs 8,000 to Rs 6,39,000. Further, 10 grams of 22K fell by Rs 800 to Rs 63,900, and 8 grams is lower by Rs 640 to Rs 51,120. And 1 gram, the lowest gold price is down by Rs 80 to Rs 6,390.

18K Gold Prices: Coming to the lowest carat, gold here plunged by Rs 6,600 in 100 grams to Rs 5,22,800. While 10 grams is down by Rs 660 to Rs 52,280, 8 grams slipped by Rs 528 to Rs 41,824 and 1 gram which is the cheapest gold of 18K inched down by Rs 66 to Rs 5,228.

According to Kaynat Chainwala, AVP-Commodity Research, Kotak Securities, Comex Gold (December) dropped nearly $100 and recovered $40 amidst a volatile market mirroring the broader market sell-off that swept across various asset classes. Financial markets began pricing in a potential recession in the US, anticipating a 50 bps rate cut by the Fed in September, following disappointing manufacturing and employment reports. The US Dollar fell by 0.50% to 102.70, while the 10-year US Treasury bond yield fell by one basis point to 3.783%.

However, despite the day's steep decline, Chainwala added that gold maintains a long-term bullish outlook, supported by continuous central bank purchases, robust investor demand, and escalating geopolitical tensions in the Middle East further supporting gold as a safe-haven asset.

Further, he said, Comex Silver dropped to a 3-month low of $27 per ounce, as escalating growth concerns and a widespread financial market selloff diminished its safe-haven appeal.

Silver Prices In Bangalore:

This precious metal declined by Rs 1,500 to Rs 83,500 in 1 kg, while silver in 100 grams fell by Rs 150 to Rs 8,350. Also, 10 grams is down by Rs 15 to Rs 835. Additionally, 8 grams of silver is down by Rs 12 to Rs 668, and lastly, 1 gram slipped by Rs 1.50 to Rs 83.50.

MCX Gold, Silver Prices:

The MCX gold futures with October expiry is marginally up at the time of writing to Rs 69,321 per 10 grams. This bullion ranged from Rs 69,470 to Rs 68,925 in the day.

Meanwhile, MCX silver futures dipped by Rs 507 or 0.64% to trade at Rs 79,091 per 1 kg. This precious metal with September expiry ranged from Rs 80,057 to Rs 79,822 on Tuesday.