Gold Rate Bangalore, May 28: Yellow Metal Jumps For 2nd Day, Silver Up By Rs 5K In 2 Days

Gold prices in Bangalore have seen a surge today after following a sharp fall in the past week. The gold market is witnessing fluctuations amidst the PCE inflation data that is awaited this week. The economic data on consumer spending, Q1 GDP, consumer confidence will shape the trajectory in the gold market this week. Moreover, the recent RBI dividend payout to the central government is also having a substantial impact on the gold market both domestically and globally.

Gold prices in Bangalore: 24K gold surged by Rs.2,200 for 100 grams reaching Rs.7,29,300 from Rs.7,27,100 on previous day. 10 grams went up by Rs.220, reaching Rs.72,930 compared to Rs.72,710 yesterday. While 8 grams increased by Rs.176 reaching Rs.58,344 in contrast to RS.58,168 yesterday. Lastly, 1 gram gold climbed by Rs.22 reaching 7,293 from Rs.7,271 the previous day.

The 22K gold increased at the same rate. 100 grams went up by Rs.2,000 thus reaching Rs.6,68,500 against Rs.6,66,500. Similarly, 10 grams surged by Rs.200 touching the mark of Rs.66,850 in contrast to Rs.66,650 the previous day. The 8 grams of gold boosted by Rs.160 reaching Rs.53,480 compared to previous day's closing of Rs. 53,320. Lastly, 1 gram of gold went up by Rs.20 to Rs.6,685 against Rs.6,665 the last day.

In the case of 18K, 100 grams increased by Rs. 1,700 reaching Rs.5,47,000 compared to Rs.5,45,300 the previous day. Whereas, 10 grams of gold climbed by Rs.170 reaching Rs.54,700 in contrast to Rs.54,530 the previous day. 8 grams of gold went up by Rs.136 reaching Rs.43,760 against Rs.43,624 the previous day. Lastly, 1 gram of gold surged by Rs.17 reaching Rs. 5,470 against Rs.5,453 in the previous day's closing.

The latest Fed's meeting minutes suggest that the reserve bank could take longer than expected to gain confidence regarding inflation hitting the 2% target. This announcement has prompted traders to scale back their bets on interest rate cuts by the Fed in the second half of the year. According to the CME FedWatch tool the odds dropped from 63% to 49% .

Furthermore, US Gross Domestic Product (GDP) growth in Q1 shows a slight moderation since the previous session. It is estimated to grow at an annualized rate of 1.4% from the previous reading of 1.6%. Despite this, expectations remain high for the US Core Personal Consumption Expenditures Price Index (Core PCE) which is also the Fed's preferred inflation measure. The projections indicate a 0.3% month-on-month increase and a 2.8% year-on-year rise in April.

Amidst the recent volatility and fluctuations in the market, experts have adjusted their outlooks for gold prices. UBS analysts have revised their projection upwards, anticipating a price target of $2,600 by the end of 2024. Meanwhile, Citi experts have forecasted a potential surge to $3,000 per ounce within the next six to eighteen months. These revisions reflect growing optimism among the traders for the future trajectory of gold prices amidst evolving global dynamics.

The domestic impact on the gold market in India is driven by the recent dividend payout to the RBI. global rating agency Fitch made a remark on Monday saying, RBI's decision to transfer Rs.2.1 Lakh crore as a surplus to the federal government for the financial year of 2023-24, which is equivalent to 0.6% of the country's GDP is unlikely to be sustained.

The gold rates in Bangalore are affected by the ongoing market dynamics both global and domestic, along with the US data, the ECB's policy meeting next week for rate cuts is also a major key driver in the gold market. Apart from that, the rising geopolitical tensions in the middle east is also affecting the gold rates in India. All these macroeconomic factors are dynamic and thus sometimes increase the market volatility. Before any major investment, all the market variables must be studied thoroughly.

Similarly, the price of silver in Bangalore has increased by Rs.5,000 in two days. The rate of silver for 100 grams in Bangalore is Rs.9,650.