Gold Rate in India Takes A Breather! 24K Down Rs 6,500; Will Gold Reverse Losses Today? Check 4 Oct Outlook

Gold Rate In India: Despite continuous concerns about the extended US shutdown, expectations of US Fed rate cuts in October, and tariff tensions, gold saw some price correction for the second consecutive day on Friday, October 3. While the recent reduction in gold and silver rates could be attributed to investors' profit booking, it has come as a significant buying opportunity for Indians amid the ongoing festive season.

The recent safe-haven rally of gold is fuelled by weak Indian currency performance, uncertainty due to the US government shutdown, and trade tariff tensions. While some experts have called the continuous gold and silver price rally the concern of bubble territory, others argue that gold price rally is unlikely to stop in the coming months.

Gold Rate In India

The price of 24 karat gold in India slipped by Rs 65 to Rs 11,804 per gram. Likewise, the price of 22 karat gold fell by Rs 60 to Rs 10,820 per gram. The price of 18 karat gold in India fell by Rs 49 to Rs 8,853 per gram. Friday's fall in gold rates is the second consecutive decline in the precious metal's valuation. Despite the decline, the gold rate continues to remain close to a record high level.

Silver Rate in India

The price of silver in India also witnessed some corrections on Friday, a day after Dussehra. Silver rate in India fell to Rs 151 per gram and to Rs 1,51,000 per kilogram on Friday. The sharp surge in silver rates is the result of strong industrial demand.

International Gold Rates

While domestic gold rates saw mild decline, international gold rates continued to rise on Friday. Spot gold rose 0.1% to $3,861.04 per ounce by 1128 GMT. The metal had hit a record high of $3,896.49 per ounce on Thursday.

Gold, Silver Price Outlook

Gold prices are likely to remain steady on Saturday as commodity exchanges will remain closed in the weekend. However, the precious metal may see a surge in valuations in the coming months amid increasing US Fed rate cut expectations.

The US Fed is likely to cut rates, which may further support gold prices over the coming months, according to UBS analyst Giovanni Staunovo. The expert sees gold price to breath the $4,000/oz mark by the end of this year, reported Reuters.

Shedding light on silver price performance, Motilal Oswal's Manav Modi noted, "Silver in Thursday's session witnessed some profit booking after hitting all all-time high on the domestic front and 14 14-year high on COMEX. The U.S. government shutdown extended to a second day on Thursday, potentially delaying key economic data releases, including the closely watched non-farm payrolls report due."