Gold Prices: Strong dollar and treasury yields have taken a toll on yellow metal globally. In the international market, spot gold touched below $2,560 levels, while at MCX, gold futures price is below Rs 74,000 mark. At retail stores of India, massive decline is also seen across 24K, 22k, and 18K. The next big driving factor for yellow metal is seen as rate cut by RBI, and economic data on expected lines. Fresh triggers in dollar index continue to drag haven assets as of now.
Spot Gold, US Gold Prices:
At the time of writing, spot gold traded at $2,558.27 an ounce, down by 0.6%, after hitting an intraday low of $2,555.44 an ounce.
Meanwhile, US gold futures with December expiry struggled to breathe above $2,560 levels. Currently, it dipped by as much as 0.93% to trade at $2,562.50 an ounce. The intraday low stood at $2,560.05 an ounce.
This comes at a time when the US dollar index skyrocketed to hit its highest level in a year to a staggering 106.5 against a basket of currencies. The latest fuel to the dollar comes after CPI inflation surged to 2.6% in October 2024, marking its first rise after seven months. Also, CPI stays above the Federal Reserve's target of 2%, dampening expectations of aggressive rate cuts ahead.
According to Trading Economics, gold fell for the fifth consecutive session to reach an eight-week low, pressured by a strong US dollar as investors absorbed the latest US CPI figures. Wednesday's consumer price data met expectations on the headline level, though the annualized three-month core rate increased.
Trading Economics data added that expectations of a Fed rate cut in December remained intact, with traders now pricing the likelihood at over 80%, up from 60% before the release.
Since last Friday, gold prices have declined by more than 4%, something that was weighed by the concerns that Donald Trump's presidency could lead to the Fed halting its rate-cut cycle, because of his fiscal strategies and inflationary policies.
Investors will keenly watch PPI data and weekly jobless claims scheduled later in the day, coupled with retail sales data scheduled on Friday.
MCX Gold Prices, Silver Prices:
MCX gold futures with December expiry dipped by Rs 729 or 0.98% to Rs 73,753 per 10 grams, which was near its day's low of Rs 73,672 per 10 grams. The day's high is priced at Rs 73,996 per 10 grams.
Additionally, MCX silver futures with an expiry date in December, tumbled by Rs 1,306 or 1.46% to trade at Rs 87,891 per 1kg. The is near its day's low of Rs 87,777 per 1kg. This silver did touch an intraday high of Rs 89,000 per 1kg.
Gold Prices In India:
24K gold prices nosedived by Rs 12,000 to Rs 7,56,500 per 10 grams, while 10 grams gold slipped by Rs 1,200 to Rs 75,650. Additionally, 22K gold prices are cheaper by Rs 11,000 to Rs 6,93,500 in 100 grams and 10 grams of gold is at Rs 69,350 lower by Rs 1,100.
Finally, 18k gold prices dipped by Rs 9,000 to Rs 5,67,400 in 100 grams, and that of 10 grams yellow metal is down by Rs 900 to Rs 56,740 on November 14.
What Will Drive Gold Prices Ahead?
Colin Shah, MD, Kama Jewelry said, "We are currently in a low-interest regime, post two straight cuts announced by the US Fed, and the RBI is expected to cut rates next month. Thereby fuelling the rally in gold further. As we are expected to be in a lower for longer interest rate regime, gold prices are expected to stay elevated. The geopolitical tensions are expected to support the yellow metal further."
Shah added, "We reiterate our view on the gold price trajectory. In the long term, gold prices will touch $3000 globally, and Rs 86,000 in the domestic markets."
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