Gold Price In India Holds Just Above Rs. 50,000/10 gm; Global Rates Dip Below $1700/oz

Gold prices in the country are on a losing streak. This is a good news for those who offloaded some of their holding anticipating a cut in gold price given the monetary tightening measures world over. As we write, internationally spot gold at around 12:01 pm has moved below $1700 per oz. This is a sheer collapse of $143 or 7.8% in a month's time.

Why gold prices are softening?

The aggressive rate hike bets have subsided and as per Reuters poll of economists, most of the economists vote for a 75 bps rate hike in the Fed's upcoming July 27 meet. Nevertheless gold is finding no support and is seeing a decline every other day. Dollar's push amid uncertain conditions has led the bullion to such levels.

But notably as is seen, from last week dollar has been under pressure, if not the dollar weakness, there is a view that gold would have inched much lower.

So, the prime deterrent for gold has been the hawkish Fed which has hiked rates ever since March of this year.

Gold's slide to 11-month low from its highest price this year; loss of over 18% in gold value

In March this year, gold has logged its highest level of $2078 per ounce. This is a collapse of almost $388 per ounce in barely 4 months time.

India gold prices

In India, 22K gold after the continuous correction is available for Rs. 46000 per 10 gm, while 24K gold is holding Rs. 50000 per 10 gm levels and is priced at Rs. 50,180 per 10 gm in Mumbai. Note the rates are exclusive of VAT and other levies.