Gold Rates In Bangalore, Price Of Yellow Metal Slips By Rs 4,400, Election Results In Focus

Gold rates in Bangalore today saw a downward trend amidst the high market volatility as the Lok Sabha election results will be announced soon. Similarly, the silver rates in Bangalore also slipped as the price of white metal witnessed a fall after touching the record high. The twelve exit poll results indicate a big win for the ruling BJP led NDA. Apart from that, the huge shift in the gold reserves by the RBI recently has also affected the gold rate in India.

In May, the gold prices surged 2% in contrast to 5% growth in the month of April. Even the Indian Rupee witnessed a rally today ahead of the exit poll results. It went up by 43 paise to reach 83.00 against the US dollar.

Moreover, the gold reserves in India have increased as the RBI moves 100 tonnes of gold into the domestic vault from the UK. As of March 31, 2024, the Reserve Bank of India held 822.10 tonnes of physical gold, marking a rise of 27.47 tonnes from the 794.63 tonnes it held on March 31, 2023.

The huge gold reserve can help the central bank control the local gold prices in the country,

Gold prices in Bangalore: 24K gold declined by Rs.4,400 for 100 grams reaching Rs.7,21,100 from Rs.7,25,500 on previous day. 10 grams went down by Rs.440, reaching Rs.72,110 compared to Rs.72,550 yesterday. While 8 grams decreased by Rs.452 reaching Rs.57,688 in contrast to RS.58,040 yesterday. Lastly, 1 gram gold declined by Rs.44 reaching 7,211 from Rs.7,255 the previous day.

The 22K gold declined by the same rate. 100 grams went down by Rs.4,000 thus reaching Rs.6,61,000 against Rs.6,65,000. Similarly, 10 grams decreased by Rs.400 touching the mark of Rs.66,100 in contrast to Rs.66,500 the previous day. The 8 grams of gold declined by Rs.320 reaching Rs.52,880 compared to previous day's closing of Rs. 53,200. Lastly, 1 gram of gold went down by Rs.40 to Rs.6,610 against Rs.6,650 the last day.

In the case of 18K, 100 grams went down by Rs.3,300 reaching Rs.5,40,800 compared to Rs.5,44,100 the previous day. Whereas, 10 grams of gold decreased by Rs.330 reaching Rs.54,080 in contrast to Rs.54,410 the previous day. 8 grams of gold went down by Rs.264 reaching Rs.43,264 against Rs.43,528 the previous day. Lastly, 1 gram of gold declined by Rs.33 reaching Rs. 5,408 against Rs.5,441 in the previous day's closing.

The recent geopolitical conditions in the middle east as well as the derecognition of Russia's foreign reserves by the US might have a huge impact on countries keeping their gold reserves domestically.

Industry body Assocham said in a study that, in case India gets a decisive government after elections even within a coalition framework, the investor bias will return towards equity and real estate and the gold may lose in the bargain of portfolio shuffling.

The study further mentioned that, "In the case of a stable government, the Sensex will zoom and the overall investor confidence about economic activities such as real estate, finance, consumer goods, two-wheelers and passenger cars will pick up immediately."

The silver rates in Bangalore are also witnessing a downward trend as the investors await the election results for the further market trajectory.

Yellow metal price in Bangalore is getting affected by multiple factors. The Lok Sabha election results that will be announced tomorrow is a major key factor influencing the gold market. Investors are awaiting the result to decide the next move in the market.