Amid ongoing uncertainties in the global economic landscape, gold prices stayed steady on Saturday, January 27 (Global Gold Prices).
In India, the value of the precious metal remains robust, with 10 grams of 24-carat gold priced at Rs 62,950. The equivalent quantities of 22-carat gold and 18-carat gold are valued at Rs 57,700 and Rs 47,210, respectively. It is noteworthy that Gold Prices in Indian Rupees have experienced a notable increase of 7.99% compared to the same period last year.
Internationally, gold prices held steady on Friday, with investors closely observing the upcoming US Federal Reserve’s policy meeting scheduled for next week.
The attention is centered on gaining insights into the outlook for interest rates. Spot gold remained relatively constant at $2,016.95 per unit, showing a minimal 0.6% decline for the week. Meanwhile, US gold futures settled mostly flat at $2,017.3 per unit.
On the Multi Commodity Exchange (MCX), Gold Futures with a maturity date of February 5, 2024, concluded 0.02% lower at Rs 61,950. Simultaneously, the MCX futures for Silver maturing in March 2024 were trading at Rs 71,795, indicating a marginal increase of 0.03%. Jateen Trivedi, VP Research Analyst at LKP Securities, sheds light on recent developments in the gold market. Trivedi observes, “Gold prices saw a slight uptick during the Asian session, driven by geopolitical tensions in the Middle East, which heightened demand for safe-haven assets. The US Dollar, in an attempt to recover, faced challenges in gaining momentum below recent highs. Despite positive US Purchasing Managers’ Index (PMI) data tempering expectations for an early Federal Reserve interest rate cut, persistent global uncertainties, particularly in the Middle East, lent support to gold.”
Additionally, Trivedi underscores the market’s reaction to contradictory influences, expressing, “Nevertheless, the precious metal maintained a tight trading range between 61,750 and 62,200 throughout the week, indicating a market contending with conflicting factors. These factors encompass geopolitical tensions providing support to gold, while economic data poses challenges to its upward momentum.”
Fluctuations in gold and silver prices are influenced by several factors, encompassing the demand for gold, variations in currency values between countries, prevailing interest rates, and governmental regulations governing the gold trade. Additionally, global events, such as the state of the global economy and the strength of the US dollar against other currencies, significantly contribute to determining gold prices in the domestic market.
Examining gold rates in different Indian cities, the current gold price in Delhi for 24-carat gold (10 grams) is Rs 63,100, while the cost of 10 grams of 22-carat gold in the national capital stands at Rs 57,850. In Bangalore, the prices for 24-carat gold (10 grams) are Rs 62,950, with 10 grams of 22-carat gold priced at Rs 57,700.
Gold rates in Bangalore align with those in Hyderabad, Kerala, and Kolkata. Meanwhile, in Chennai, the price for 10 grams of 24-carat gold is Rs 63,710, and the same quantity of 22-carat gold is priced at Rs 58,400.
The stability observed in gold prices across Indian cities underscores the resilience of the precious metal in the face of a complex global economic scenario. Investors and market participants remain vigilant, closely monitoring geopolitical events and economic indicators that may impact gold prices in the upcoming days.
