Gold Prices In Bangalore; Yellow Metal Gets Cheaper, Drops By Rs 2,700; Latest 24K, 22K, 18K Prices Here

Gold prices in Bangalore today saw a sharp fall after seeing a rally yesterday ahead of the CPI data that was released by the Fed. The price of yellow metal was seeing constant market fluctuations in the midst of economic data released by the Fed this week. The data released by the Fed reveals that US CPI rose 0.3% last month in contrast to 0.4% in March and February.

Gold prices in Bangalore: 24K gold declined by Rs.2,700 for 100 grams reaching Rs.7,37,500 from Rs.7,40,200 on previous day. 10 grams went down by Rs.770, reaching Rs.74,020 compared to Rs.73,250 yesterday. While 8 grams decreased by Rs.616 reaching Rs.59,216 in contrast to RS.58,600 yesterday. Lastly, 1 gram gold declined by Rs.77 reaching 7,402 from Rs.7,325 the previous day.

The 22K gold declined by the same rate. 100 grams went down by Rs.2,500 thus reaching Rs.6,76,000 against Rs.6,78,500. Similarly, 10 grams decreased by Rs.250 touching the mark of Rs.67,600 in contrast to Rs.67,850 the previous day. The 8 grams of gold declined by Rs.200 reaching Rs.54,080 compared to previous day's closing of Rs. 53,280. Lastly, 1 gram of gold went down by Rs.25 to Rs.6,760 against Rs.6,785 the last day.

In the case of 18K, 100 grams went down by Rs.2,000 reaching Rs.5,53,100 compared to Rs.5,55,100 the previous day. Whereas, 10 grams of gold decreased by Rs.200 reaching Rs.55,310 in contrast to Rs.55,510 the previous day. 8 grams of gold went down by Rs.160 reaching Rs.44,248 against Rs.44,408 the previous day. Lastly, 1 gram of gold declined by Rs.20 reaching Rs. 5,531 against Rs.5,551 in the previous day's closing.

Gold prices rose by 2.5% last week. The CPI rose 0.3% last month, a slight decrease against 0.4% in February and March. This implies that inflation has resumed its downward trajectory at the beginning of the second quarter, boosting financial market expectations of rate cuts in September. According to the CME FedWatch Tool, traders are currently estimating a 74% probability of a U.S. rate cut in September.

COMEX Gold prices rose more than 1% on Wednesday and is only 2% shy of an all-time high of $2448.8 per troy ounce notched in April 2024. The yellow metal was buoyed by a weaker dollar and lower US benchmark treasury yields, after the inflation numbers indicated a cool down, strengthening expectations of an interest rate cut by the Federal Reserve said, Kaynat Chainwala - Senior Manager, Commodities Research - Kotak Securities.

He also stated that, The US headline CPI slowed to 0.3% m/m, below the expected 0.4%, while y/y numbers eased to 3.4% and core inflation to 3.6%, aligning with forecasts which was followed by a dovish statement from Chicago Fed Bank President Austan Goolsbee who expressed his optimism that inflation would continue to decrease. Investors now look ahead to weekly jobless claims data and the Philadelphia Fed manufacturing index later today.

The gold market has rebounded after getting support around $2,285 and has now reached an important resistance zone around $2,375. A softened dollar would further increase the attractiveness of the precious metal.

It should be noted that high inflation has been a major driving force for gold's recent ascent. Investors seek to protect their wealth against currency depreciation and rising inflation by investing in gold. In the current market scenario, gold has maintained its position as even if the CPI is high the demand for gold will heighten as a hedge against inflation and if the CPI is weaker the gold will heighten as a result of a weaker Dollar. Economists anticipate a decrease in price pressures in the current quarter, with inflation expected to gradually align with the Fed's target as the labor market cools down.

The gold rates in Bangalore saw a decline amidst the Fed reports. Along with the recent developments in the middle east which is also a key factor in determining the demand and price of gold.