Gold, Silver Prices: Yellow Metals Get Cheaper India, Rises In USA; What's Driving Safe Haven Assets?

In the packed week of major economic data and US Federal Reserve official's comments on policy stance ahead, the safe haven assets such as gold and silver witnessed a mixed trend globally on Wednesday. In major economies like the United States, the prices of gold shot up but in India, prices tumbled compared to the previous sessions. From 22-carat to 18-carat, yellow metal was cheaper by Re 1 to Rs 100 in retail stores in the country. MCX gold and silver also tumbled.

Pranav Mer, Vice President, EBG - Commodity & Currency Research, JM Financial Services said, "Gold and most other commodities are trading in the negative territory, weighed by a stronger U.S. dollar which has again moved above 104-level against major currencies ahead of key economic data on U.S. GDP due later in the day. Oil prices are down more than 15 with WTI crude below $78 per barrel - after overnight API data showed a larger-than-expected build in oil inventories and expectation of a cease-fire in the Israel-Hamas conflict. Base Metals too are trading in the negative territory weighed by demand concerns from China and as we look ahead to PMI data from across regions due on Friday."

Mer added, that technically, gold is stuck between its long-term 100- and 50-day moving averages which fall around 61500 and 62400, respectively.

Gold, Silver Prices In India On February 28, 2024:

22-Carat: 10 grams of gold in this carat dipped by Rs 10 to Rs 57,590 on Wednesday, compared to the previous day's print of Rs 57,600. While 100 grams of yellow metal dipped by Rs 100 to Rs 5,75,900 as against Rs 5.76.000 the previous day. 1-gram and 8-gram prices were lower by Re 1 and Rs 8 to Rs 5,759 and Rs 46,072 respectively.

24-Carat: With a similar quantum of drop, 10-gram of 24-carat stood at Rs 62,830, versus Rs 62,840 on Tuesday. 100-gram was available at Rs 6,28,300 compared to the previous print of Rs 6,28,400. Meanwhile, 1-gram and 8-gram of gold stood at Rs 6,283 and Rs 50,264 versus Rs 6,284 and Rs 50,272 of the previous day.

18-Carat: Following the trend, 10-gram here was priced at Rs 47,120, down by Rs 10, while 100-gram was available at Rs 4,71,200, lower by Rs 100. 1-gram and 8-gram were available at Rs 4,712 and Rs 37,696, down by Re and Rs 8 respectively.

Silver Prices: 1-kg of this commodity was down by Rs 100 to Rs 73,900. While 1-gram to 10-gram of silver was down by Rs 0.10 to Rs 10. On February 28, the 1-gram silver rate was at Rs 73.90, 8-gram was at Rs 591.20, 10-gram at Rs 739, and 100-gram was at Rs 7,390.

MCX Prices: Bullion futures with April 2024 expiry dipped by Rs 180 or 0.29% to trade at Rs 62,121 per 10 grams. The bullion ranged from Rs 62,081 to Rs 62,258 per 10 grams in the day. Meanwhile, silver prices plunged by Rs 491 or 0.69% to trade at Rs 70,567 per 1 kg, and broadly ranged between Rs 70,504 to Rs 70,980 per 1 kg.

Gold Prices, Futures In The United States On February 28, 2024:

At the time of writing, spot gold and US gold futures were in the red zone. While in retail stores in the USA, prices were up.

Spot gold traded at $2,025.06 an ounce, down by 0.2%. The XAU/USD ranged from $2,025.06 - 2,033.80 an ounce. While US gold futures with April expiry shed 0.5% to trade at $2,033.85. The futures ranged from $2,033.85 - 2,042.45 an ounce.

Except for 24-carat gold in the USA, prices were up in 22-carat and 18-carat. Also, in Indian rupees, 10-gram gold of 22-carat has scaled up by massively Rs 414.60, and by Rs 4,146.03 per 100-gram in the USA.

22-carat: 10-gram here was up by $5 to $625 from the previous day. 100-gram was up by $50 to $6,250, 1-gram up by $0.50 to $62.50, and 8-gram were up by $4 to $500.

24-Carat: Prices here were unchanged. 10-gram was available at $655, while 100-gram at $6,550, 1 gram at $65.50, and 8-gram at $6,550 per 8 grams.

18-Carat: 10-gram here was up by $4 to $511, while 100-gram was higher by $40 to $5,110. Further, 1-gram and 8-gram were up by $0.40 and $3.20 to $51.10 and $408.80 respectively on Wednesday.

In the Indian rupee, 22-carat of 10-gram surged by Rs 414.60 to Rs 51,825.37 in the USA, while the 100-gram price skyrocketed by Rs 4,146.03 to Rs 5,18,253.75 compared to the previous day.