Gold Prices In India, 24-Carat Rises By Rs 4,090 In Month: What Is Trigging Rise In Yellow Metal?

Prices of pristine metal aka gold have shot up significantly in a month. 24-carat gold in 10 grams is up by more than Rs 4,000 in a month, which is nearly a 6.51% upside in percentage terms. On March 27th, 18-carat, 22-carat and 24-carat of 10-gram in gold prices were up by Rs 160 to Rs 220 alone. In March month, yellow metal gets a big boost from the US Federal Reserve's outlook for 3 rate cuts in 2024 and dovish comments.

Gold Prices In India:

In 22-carat, 10-gram gold is up by Rs 200 on March 27, to Rs 61,350 compared to the previous day. While 100 grams of gold surged by Rs 2,000 to Rs 6,13,500, 8 grams was up by Rs 160 to Rs 49,080, and 1-gram jumped by Rs 20 to Rs 6,135 from the previous day.

Under 24-carat, gold prices were up by Rs 220 in 10-gram to Rs 66,930 on March 27 versus the previous day. Further, 100-gram gold climbed by Rs 2,200 to Rs 6,69,300, 8-gram was higher by Rs 176 to Rs 53,544, and 1-gram yellow metal inched up by Rs 22 to Rs 6,693 from the previous day.

Moreover, in the case of 18-carat, on March 27, 10-gram of gold is up by Rs 160 to Rs 50,190, while 100-gram soared by Rs 1,600 to Rs 5,01,900, 8-gram prices jumped by Rs 128 to Rs 40,152, and lastly, 1-gram of gold is available at Rs 5,019 up by Rs 16 compared to the previous day.

On the same day, in February, 24-carat and 22-carat of 10 grams stood at Rs 62,840 and Rs 57,600.

Accordingly, gold prices have climbed by Rs 4,090 or 6.51% in 24-carat of 10-gram. Meanwhile, 22-carat in the same gram has surged by Rs 3,750 or 6.51% in a month.

MCX Gold Prices:

Meanwhile, MCX gold price with April 5 expiry rose by Rs 245 to Rs 66,359 on March 27, and that of June expiry surged by Rs 263 to Rs 66,949 in 10 grams.

Jateen Trivedi, VP Research Analyst, LKP Securities said, "Gold prices in MCX were seen positive up by 250rs at 66350+ taking support from Comex Gold trading higher above 2192$ testing 2200$ resistance again and again every day."

Trivedi added, "The participation in Gold has increased after FED's policy and a dovish statement which has triggered new buying momentum in Gold as broadly Gold takes the support of 2150$ and resistance of 2200$ once prices start trading above 2200$ escalations towards 2250$ cannot be ruled out."

Keeping its goals of achieving maximum employment and inflation at the rate of 2% for the longer run, the US Fed decided to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 per cent. Fed pointed out that the latest indicators in the US suggest that economic activity has been expanding at a solid pace. Job gains have remained strong, and the unemployment rate has remained low. However, it said, "Inflation has eased over the past year but remains elevated, as per FOMC."

Also, FOMC led by chair Jerome Powell continues to expect three rate cuts of 25 basis points each in 2024, however, the trajectory for lowering rates is fewer for 2025.

In case of rate cuts, non-yielding assets like gold become attractive among overseas investors against other foreign currencies. This is because dollar and bond yields tend to take a slippery slope in the rate-cut scenario.

On this week's gold performance, Rahul Kalantri VP of commodities at Mehta Equities said, "After the Bank of Japan policy tweak market expectations are that the global central banks could continue to increase their gold reserves in this year. Increasing government debts in the world's biggest economy i.e. U.S. and China are also supporting gold demands."

Kalantri added, "We expect gold prices to remain volatile this week ahead of the key U.S. economic data and Fed Chairman's speech but Gold has support at $2164-2150 while resistance at $2192-2205. In INR gold has support at Rs65,880-65,740, while resistance at Rs 66,280, 66,420."

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