Gold Prices Lose Shine After Positive Start To 2024; 24 Carat Slips Below Rs 64,000 Per 10 Grams

The gold market across the country saw a notable change in their prices on Wednesday, breaking a three-day streak of stability. While the yellow metal remained stagnant from December 30 to January 2, the rates exhibited a significant uptick on January 3.

The most notable change was observed in gold prices, where 24-carat gold witnessed a growth of Rs 270 per 10 grams on January 3. The rate for one gram of 24-carat gold reached Rs 6,424, and for 22-carat gold, it settled at Rs 5,890 on Monday.

For one gram of 24-carat gold, buyers can expect to pay Rs 6,426, while the rates for eight grams, 10 grams, and 100 grams stand at Rs 51,392, Rs 64,240, and Rs 6,42,400, respectively. It is important to note that these rates exclude GST, TCS, and other levies, serving as indicative prices. Local jewellers are the best source for exact rates on a given day.

Rahul Kalantri, VP Commodities at Mehta Equities Ltd, explained, "Gold and silver exhibited significant volatility during the early trading session, experiencing gains that proved fleeting as the dollar index surged to 2-week highs. The strength in the U.S. 10-year bond yields further curtailed the upward momentum of precious metals."

Kalantri added, "The alleviation of tensions in the Red Sea diminished the safe-haven appeal of gold and silver. The depreciation of the pound sterling and the euro also contributed to the decline in gold and silver prices."

Anticipating ongoing volatility, experts project that gold will find support in the range of $2,048-2,034, with resistance at $2,078-2,087. In terms of Indian Rupee, gold is poised to receive support between Rs 62,980-62,820, with resistance at Rs 63,540-63,690.

The cost of 24-carat gold in various cities on January 3 stands at Rs 64,580.0/10g in Chennai, Rs 64,240.0/10g in Delhi, Rs 64,090.0/10g in Mumbai, and Rs 64,090.0/10g in Kolkata. Meanwhile, the gold April 2024 MCX futures were trading at Rs 63,659.0 per 10 gm, reflecting a 0.11% increase at the time of publishing.

Fluctuations in gold prices are influenced by various factors, including input from respected jewellers, global demand for gold, currency value variations, prevailing interest rates, and government regulations. Furthermore, worldwide events such as the state of the global economy and the strength of the US dollar against other currencies also exert significant influence on gold prices in the Indian market.

Today's uptick in gold prices marks a shift from the recent stability, offering investors and consumers an interesting turn in the precious metals market. Analysts will closely monitor global economic indicators and geopolitical events to gauge the trajectory of these prices in the coming days.