Gold prices in India are likely to react to US inflation data that slowed for the fifth straight month in August 2024. This will be the case with MCX gold and international bullion prices as well. Although, US inflation cooled, the latest data is lower than expected, stirring momentum in dollar and treasury yield and making non-yielding assets less attractive as investors hope for a 50 bps rate cut by the Fed in upcoming policy dims. At home, this precious metal will also await India's CPI inflation and IIP data scheduled on Thursday. Gold is seen as a safe-haven asset to hedge returns in risks related to inflation. In the previous session, gold prices gained momentum.
Gold Prices In India:
Currently, the 24K gold price is at RS 73,250 per 10 grams, while 22K and 18K prices are at Rs 67,150 and Rs 54,940 per 10 grams. The prices were up by Rs 31 to Rs 4,100 on September 11, which emerged as the single biggest surge in 5 days.
Broadly, gold prices have remained volatile. Due to the latest surge in the yellow metal, 22K and 24K recovered previous days' losses in September 2024, and have surged by 0.3% each.
Gold Prices In 5 Major Cities:
Gold Price In Delhi: 24K of 10 grams is at Rs 73,400, while 22K price is at Rs 67,300.
Gold Price In Mumbai: 24K yellow metal in 10 grams is available at Rs 73,250, while 22K price is at Rs 67,150 per 10 grams.
Gold Price In Kolkata: In this city, 18K yellow metal in 10 grams is available at Rs 54,940, while 24K and 22K prices is at Rs 73,250 and Rs 67,150 respectively.
Gold Price In Kerala: Amidst the Onam festival, gold prices surged in this tropical city. 24K/10 grams gold is at Rs 73,250, and 22K price is at Rs 67,150.
Gold Price In Bangalore: Similarly, 24K and 22K gold in 10 grams are available at Rs 73,250 and 67,150 respectively.
Gold Price In Chennai: Another southern city where gold prices surged. The 24K of 10 grams is at Rs 73,250, and the 22K of the same is at Rs 67,150.
Gold Price In Ahmedabad: Here, 24K gold is at Rs 73,330, and 22K gold is at Rs 67,200.
Gold Prices In Major Countries:
1 gram of gold in 24K in the souk market of Dubai is at AED281.25 or Rs 6,434, while 1 gram of the same carat is priced at QAR285 or Rs 6,567 in Qatar. In Saudi Arabia and Singapore, 1 gram of gold in 24K is available at Rs 6,468 (SAR289) and Rs 6,617 (SGD102.70) respectively.
In the western cities, the gold price of 1 gram in 24K is at Rs 6,227 (GBP56.84) in England, while the price is at Rs 6,530 (CAD105.50) in Canada.
MCX Gold, Silver Prices:
MCX gold with October expiry ended at Rs 71,949 per 10 grams on September 11, while MCX silver with December expiry is at Rs 84,480 per 1kg.
Spot Gold, US Gold Prices: As per Reuters, gold prices fell on Wednesday as the dollar and Treasury yields firmed after U.S. inflation data prompted investors to scale back expectations of an over-sized rate cut from the Federal Reserve next week. Spot gold was down 0.4% at $2,505.17 per ounce, while U.S. gold futures were down 0.4% to $2,533.70.
Gold Price Outlook On September 12:
Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities said that gold traded with gains of ₹180 at ₹72,070 in MCX and $5 higher at $2,520 in Comex, reflecting optimism ahead of the U.S. CPI data release. The market is anticipating softer inflation, leading to positive sentiment over the last few days."
However, gold prices may fluctuate amid volatile international prices after US inflation data.
Trivedi believes that key support remains at ₹71,000 in MCX and $2,485 in Comex. If the CPI data comes in lower than expected, the uptrend may continue, pushing gold prices toward ₹72,500. Conversely, a higher-than-expected CPI could trigger minor profit booking, bringing prices down toward ₹71,250. The focus remains on the 18th September 2024 Federal Reserve meeting, where a potential interest rate cut cycle may commence.
US inflation data has come lower than estimates, hence hinting at support of Rs 72,500 for gold prices in India. As per Trading Economics, the annual inflation rate in the US slowed for a fifth consecutive month to 2.5% in August 2024, the lowest since February 2021, from 2.9% in July, and below forecasts of 2.6%. Energy costs declined (-4% vs 1.1% in July), mainly due to gasoline (-10.3% vs -2.2%), fuel oil (-12.1% vs -0.3%) and natural gas (-0.1% vs 1.5%). Meanwhile, core inflation steadied at an over three-year low of 3.2% but the monthly core inflation rate edged up to 0.3% from 0.2%, above forecasts of 0.2%.
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