Gold Prices Fall In Bangalore After Rising By Rs 17,400 In 3 Days; 18K/10 Grams Slip Below Rs 53,000; WHY?

Gold prices in Bangalore slipped on August 3rd after rising by Rs 17,400 in 24K/100 grams cumulatively in 3 days. The bearish trend in gold comes at a time when global demand in Q2 of 2024 has declined by 6% YoY to 929 tonnes. As per the World Gold Council, the reason for demand to deteriorate is the steep correction in jewellery consumption.

However, if OTC investment is included, the total demand sees a single-digit surge of 4% to 1,258 tonnes YoY, making it the highest Q1 performance since WCG commenced data collection in 2000.

The start of August month has been bullish broadly for yellow metal globally with international spot gold lurking near its all-time highs. The prices got a boost after the Fed's policy rates were unchanged in the latest meeting, and a signal of a possible rate cut in September was on the cards. Further, escalation in geopolitical tensions in the Middle East with Israel expected to face a two-front war with Gaza and Hezbollah on the opposite side, gold prices lingered up as investors resorted to haven assets amidst geo-uncertainty.

Also, gold prices surged due to recession fear after the US' latest jobless claims data.

Gold Prices In Bangalore On August 3rd:

24K Gold Prices: 100 Grams of 24K gold price in Bangalore fell by Rs 1,100 to Rs 7,05,800. Further, 10 grams is down by Rs 110 to Rs 70,580, 8 grams gold price dipped by Rs 88 to Rs 56,464, and 1 gram is down by Rs 11 to Rs 7,058.

22K Gold Prices: 100 Grams gold here has plunged by Rs 1,000 to Rs 6,47,000, while 10 grams tumbled by Rs 100 to Rs 64,700, 8 grams is lower by Rs 80 to Rs 51,760, and 1 gram is down by Rs 10 to Rs 6,470.

18K Gold Prices: Gold in the lowest carat, plummeted by Rs 800 to Rs 5,29,400, while 10 grams fell by Rs 80 to Rs 52,940 and erased its Rs 53,000 mark. 8 grams is down by Rs 64 to Rs 42,352, and 1 gram is lower by Rs 8 to Rs 5,294.

Gold Prices This Week:

24k/100 grams gold fell after rising by Rs 3,300 on August 1, followed by a surge of Rs 5,400 on August 2, and an increase of Rs 8,700 on July 31. From July 31 to August 2nd, this carat in 100 grams jumped by Rs 17,400.

Explaining the surge at the start of August, Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities said that the issue is driven by renewed fears of a US recession following higher jobless claims and escalating tensions in the Middle East, fueling safe-haven buying."

Going ahead, Trivedi added, investors are now focused on the upcoming Nonfarm Payrolls and unemployment data, which will provide clarity on the likelihood of a September rate cut by the Federal Reserve. The broad trend for gold remains positive."

Gold prices nosedived by 3.40% each across 24K, 22K, and 18K in July 2024.

Silver Prices In Bangalore:

Just like gold, prices of silver across grams fell too on August 3. 1 kg silver was down by Rs 250 to Rs 85,750, meanwhile, 100 grams is down by Rs 25 to Rs 8,575, 10 grams is lower by Rs 2.50 to Ts 857.50. Also, 8 grams is down by Rs 2 to Rs 686, and the cheapest silver of 1 gram is at Rs 85.75 down by Rs 0.25.