Gold Prices, March 13: Yellow Metal Falls For 2nd Day After Rising By Rs 2000 In 5 Days

On Wednesday, March 13, 2024, the price of gold fell in India for the second day in a row due to higher-than-anticipated US CPI inflation data. Today's gold prices in India are Rs 6,035 for 22-karat gold and Rs 6,584 for 24-karat gold (also known as 999 gold). In India, the price of 10 grams of 22k gold is Rs 60,350 today compared to Rs 60,740 yesterday, indicating a drop of Rs 390. In contrast, the price of 10 grams of 24k gold is Rs 65,840 today compared to Rs 66,260 yesterday, representing a fall of Rs 420. The price of gold fell by Rs 400 in two days for Rs 22,k, following a spike of Rs 2000 in yellow metal during the previous five days.

As of 01.59 GMT, spot gold was up 0.13% at $2,159.81 per ounce. US gold futures dropped to $2,164.80, down 0.07%.

The COMEX spot gold price is getting close to the all-time high levels set in December 2023 as the gold price is back on its upward trajectory. The MCX gold prices have reached an all-time high, surpassing Rs. 65000 per 10 grams, due to robust domestic demand and positive global cues. Despite rising interest rates, gold prices have gone up over the last year as a result of the growing possibility of the political and market stability brought on by heightened geopolitical tensions.

According to Tapan Patel, Fund manager - commodities, Tata Asset Management, "Gold prices are currently getting support from two key factors: Macroeconomic environment, Geopolitical risk, apart from central banks buying. Gold prices have rallied since last one year on market and political stability risk due to heightened geopolitical factors despite higher interest rates. The geopolitical factors like major war may only have a longer impact on gold prices. We believe the impact of the current geopolitical risk premium will be short-lived and prices may react to the macro-economic development going forward. The price movement of crude oil is a recent example of such geopolitical risk premium over the Russia-Ukraine conflict."

"Gold prices tend to perform well in low-interest rates scenario. The global market is eying on US FED to take a lead on the pivot of the interest rates cycle. The weaker US data is still indicating a soft landing of US economy which is an additional supportive factor for gold. Investors should look for optimum asset diversification and may look forward to having some exposure in gold on supportive market environment," added Tapan Patel.

Commenting on the supporting the prices of yellow metal trading at record high prices, Mr. Sachin Kothari, Director at Augmont Gold for All said, "Gold is trading at record high prices around $2200 (~Rs 66000) on strong demand from China, as Chinese investors are hedging against potential economic instability amid the commercial real estate crisis in their country.

Moreover, lower growth concerns in other economies around the world is also supporting the prices. There are several other reasons why gold prices have increased in the United States. Some investors are trying to hedge against the possibility of higher-than-expected inflation, realign their portfolios after the stock market boom, and protect themselves from geopolitical instability. Concerns about wars between Russia and Ukraine and Israel and Hamas, as well as the upcoming presidential election in November, are among the concerns that investors have. As gold prices have run up too fast in the last week, we could see a bit of correction and retracement up to $2155 (~Rs 65000) and $2125 (~Rs 64400)."

MCX Gold and Silver gave negative closing yesterday, April Gold closed at 65481(-0.90%) and May Silver closed at 73850(-0.90%), As per the daily chart Bullions are now trading at an overbought zone, any time we can see profit booking in Gold and Silver, Momentum Indicator RSI also indicating the same, below are the important levels for the day: Gold April Support 65400/65200 and Resistance 65600/65800 whereas Silver May Support 73500/73000 and Resistance 74300/75000, said Amit Khare Associate Vice President at Ganganagar Commodity Limited (GCL) Broking.

The US CPI statistics were nearly entirely stronger than anticipated, which sent spot gold down 1.14% globally to settle at $2159. US ten-year rates closed at 4.151%, up 1.36%, while two-year yields climbed by 1.11% to 4.58%. The US Dollar Index wrapped up at 102.93, up 0.13% from the previous day, marking the second straight day of appreciation.