Gold Prices In Bangalore Slip By Rs.6,500 For 24K/100 Grams After Touching Record High

Gold prices in Bangalore saw a downward trend after witnessing a sharp rally in the past few days. The price of the yellow metal touched a new high after the news of Iran's president's demise. As the global uncertainties are rising market volatility is increasing which is affecting the gold rates in Bangalore.

Gold prices in Bangalore: 24K gold slipped by Rs.6,500 for 100 grams reaching Rs.7,45,100 from Rs.7,51,600 on previous day. 10 grams went down by Rs.650, reaching Rs.74,510 compared to Rs.75,160 yesterday. While 8 grams decreased by Rs.520 reaching Rs.59,608 in contrast to Rs.60,128 yesterday. Lastly, 1 gram gold declined by Rs.65 reaching 7,451 from Rs.7,516 the previous day.

The 22K gold declined by the same rate. 100 grams went down by Rs.6,000 thus reaching Rs.6,83,000 against Rs.6,89,000. Similarly, 10 grams decreased by Rs.600 touching the mark of Rs.68,300 in contrast to Rs.68,900 the previous day. The 8 grams of gold declined by Rs.480 reaching Rs.54,640 compared to previous day's closing of Rs. 55,120. Lastly, 1 gram of gold went down by Rs.60 to Rs.6,830 against Rs.6,890 the last day.

In the case of 18K, 100 grams went down by Rs.4,900 reaching Rs.5,58,800 compared to Rs.5,63,700 the previous day. Whereas, 10 grams of gold slipped by Rs.490 reaching Rs.55,880 in contrast to Rs.56,370 the previous day. 8 grams of gold declined by Rs.392 reaching Rs.44,704 against Rs.45,096 the previous day. Lastly, 1 gram of gold decreased by Rs.49 reaching Rs. 5,588 against Rs.5,637 in the previous day closing.

The gold market is following an upward trend since the beginning of April, as the geopolitical tensions in the middle east supported by the anticipation of rate cuts by the Fed is having a substantial effect on the gold prices.

Geopolitical tensions in the Middle East intensified when Iran attacked Israel with over 300 drones and missiles on military targets as a response in retaliation for a suspected Israeli strike on Iran's Syria consulate on April 1st. After this the gold market was seeing a sharp surge in the prices and demand of the gold as a safe haven metal. Almost a month later, after the reports of the Iranian president's passing in a helicopter crash, gold prices surged to unprecedented levels on Monday, 20th May.

Apart from this, the anticipation of rate cuts by the Fed in the second half of the year is also helping gold uplift its position. The April Consumer Price Index (CPI) reading offered a ray of hope for Americans seeking a slowdown in price increases, particularly in the midst of a backdrop of slow economic growth and heightened interest rates.

Gold prices in Bangalore might see a spike eventually as the market volatility rises. The gold rate in India is determined by multiple domestic and global factors. The latest CPI data by the US officials and the strong Chinese data on strong output are some of the key determinants of gold prices in the market.