Gold Price Bangalore: 24/100 Grams Up By Rs 8,700, 10 Grams Rs 180 Away To Hit Rs 70,000; Fed Meet In Focus

Ahead of the FOMC meeting decisions scheduled later on July 31, gold prices in the Silicon Valley of India, aka Bangalore rose sharply with 24/10K grams just Rs 80 away from hitting the Rs 70,000 mark. Investors are expecting a more dovish stance from the FOMC committee led by chair Jerome Powell, which is likely to be a negative risk for the US dollar and news for non-yielding assets like gold prices.

Gold Prices In Bangalore:

24K gold price in Bangalore increased by Rs 8,700 in 100 grams to Ra 6,98,200, which is Rs 1,800 away from touching the Rs 7,00,000 mark. While 10 grams price soared by Rs 870 to Rs 69,820, away by merely Rs 80 from hitting the Rs 70,000 level. 8 grams and 1 gram of gold also jumped by Rs 696 and Rs 87 to Rs 55,856 and Rs 6,982 respectively.

Further, 22K in 100 grams also jumped by Rs 8,000 to Rs 6,40,000, and 10 grams is up by Rs 800 to Rs 64,000. While 8 grams is up by Rs 640 to Rs 51,200, and that of 1 gram is up by Rs 80 to Rs 6,400.

Meanwhile, in the lowest carat 18K, 100 grams is up by Rs 6,600 to Rs 5,23,700. Also, 10 grams is up by Rs 660 to Rs 52,370, and 8 grams is up by Rs 528 to Rs 41,896, and lastly, 1 gram is at Rs 5,237 up by Rs 66.

Rahul Kalantri, VP of Commodities, Mehta Equities said, "Gold and silver prices surged in the latter half of Tuesday following news of Israel's assault on Lebanon, propelling the metals' prices above their resistance levels of $2,400 and $28.20 in global markets. Earlier in the day, gold prices had been steady around these figures, even as strong US data highlighted a tight jobs market. Market sentiment is mixed. However, a decline in US Treasury bond yields and a weakening Greenback have buoyed bullion prices as traders await the Federal Reserve's monetary policy decision on Wednesday."

In June policy, the Fed kept benchmark interest rates at 5.25% to 5.50% for the seventh consecutive meeting. However, the Fed trimmed its stance on a number of rate cuts in 2024, from three to one. Nonetheless, the latest economic indicators are in much more favour of an early rate cut, rather than wait-and-watch mode.

According to Equichain Wealth Advisors, on 31-Jul-24, the BOJ meeting outcome is due earlier in the day while the U.S. Fed is due to announce its decision later on 31-Jul-24. The market is expecting the interest rate to remain unchanged on 31-Jul-24 and Fed Chair Jerome Powell's commentary will be an important event to watch out for any comment on possible rate cuts in the September 2024 meeting will be taken positively by the global market.

Equichain's note further said, "We continue to maintain our view shared last week as mentioned above, global risk asset class such as Gold & other commodity, Dollar Index and bond yield continues to remain mix but equity market continues to trade at fresh life-time high. Recent up-move in the global equity market could get further
boost from events due this week."

Silver Prices In Bangalore:

Unlike gold, silver prices plunged on July 31. 1 kg silver is down by Rs 500 to Rs 84,000, while 100 grams is lower by Rs 50 to Rs 8,400. Also, 10 grams is down by Rs 5 to Rs 840, while 8 grams is down by Rs 4 to Rs 672 and 1 gram is lower by Rs 0.50 to Rs 84.

Additionally, Kalantri said, investors are monitoring the upcoming releases of the ISM Manufacturing PMI and the Nonfarm Payrolls report for July.

Kalantri added, "Gold has support at $2,392-2,378 and resistance at $2,420-2,438. Silver has support at $28.05-27.80 and resistance at $28.55-28.74. In INR, gold has support at Rs 68,310-68,050 and resistance at Rs 68,830-68,980. Silver has support at Rs 81,850-81,180 and resistance at Rs 82,290-82,800."