Gold Prices Surge In Bangalore On August 24 After Rs 5,500 Fall In 2-Days ; Silver Jumps Too; Check Rates

Gold prices in Bangalore on August 24 surged sharply, tracking international prices after dollar and treasury yields retreated overnight. This comes after US Federal Reserve Jerome Powell in his Jackson Hole speech hinted at the possibility of a rate cut in September, which was in line with the FOMC minutes earlier this week.

At the Jackson Hole Conference, Powell said that the time has come for policy to adjust, with inflation nearing Fe's 2% target and the job market cooling, offering an endorsement of an imminent policy easing.

Although Powell did not give an exact timeframe for lowering rates for the first time since March 2020, after FOMC minutes, the market is widely predicting that the September policy could be the start of the first-rate cut from its 23-year high levels.

Powell added that the direction is clear, and the timing and pace of the rate cut would depend upon incoming data, evolving outlook, and the balance of risks.

This led to a huge jump in spot gold and US gold futures, while the dollar and yield pulled back.

Spot Gold, US Gold, Dollar, Bond Yield: Overnight (August 23), spot gold closed at $2,512.41 per ounce, up by 1.11%, while US gold futures with December expiry surged by 1.3% to end at $2,548.70 per ounce. On the other hand, the dollar index (DXY) dipped by 0.82% to end at 100.68 against a basket of currencies. Also, the US' 10-year treasury yield fell by 0.31% to close at 3.795.

Following this, gold and silver prices surged in Bangalore as well, just like other cities in the country.

Gold Prices In Bangalore On August 24:

24K Gold Prices:

24K gold prices in Bangalore surged by Rs 39 to Rs 3,900, the highest among others.

100 grams of 24K jumped by Rs 3,900 to Rs 7,30,400, while 10 grams surged by Rs 390 to Rs 73,040. Also, 8 grams and 1 gram of gold are up by Rs 312 and Rs 39 to Rs 58,432 and Rs 7,304 respectively.

22K Gold Prices:

Here, prices zoomed by Rs 35 to Rs 3,500 in a single day.

100 grams gold price is up by Rs 3,500 to Rs 6,69,500, while 10 grams is up by Rs 350 to Rs 66,950. Additionally, 8 grams is up by Rs 280 to Rs 53,560, and 1 gram is up by Rs 35 to Rs 6,695.

18K Gold Prices:

In the lowest carat, gold prices have soared by Rs 29 to Rs 2,900.

The 100 grams of 18K climbed by Rs 2,900 to Rs 5,47,800, while 10 grams is up by Rs 290 to Rs 54,780. Also, 8 grams and 1 gram are up by Rs 232 and Rs 29 to Rs 43,824 and Rs 5,478 respectively.

Silver Prices In Bangalore:

Here, silver prices surged by Rs 2.50 to Rs 2,500.

1 kg of silver was up by Rs 2,500 to Rs 84,500, while 100 grams was up by Rs 250 to Rs 8,450. Also, 10 grams is up by Rs 25 to Rs 845, and 8 grams is up by Rs 25 to Rs 676. Lastly, 1 gram is up by Rs 2.50 to Rs 84.50.

According to Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, this upward momentum is attributed to expectations of interest rate cuts, signs of an economic slowdown in China, and a weakening dollar index, which has declined from 104 to below 101.50. The depreciation of the dollar has been influenced by other currencies performing well against the rupee, further supporting gold prices. These factors combined have bolstered investor confidence in gold as a safe-haven asset, sustaining its positive trend.