Gold rates in India continued their downward spiral in rates, with the 24-karat, 22-carat, and 18-carat gold prices extending their six-day losing trend since Diwali.
In six days, the price of 100 gm of gold has fallen by ₹76,900, while the price of 10 gm of gold has dropped by ₹7690, GoodReturns reported.
Meanwhile, the gold rates on October 24 are: 24K gold is priced at ₹12,546 per gram, witnessing a slight increase of ₹38; 22K gold costs ₹11,500 per gram, rising by ₹35; and 18K gold is available at ₹9,409 per gram, with a price uptick of ₹28.
The opening rates for standard gold (99.5) are ₹121929; pure gold (99.9) ₹122419, and for silver spot (in ₹ per kilo) ₹147750.
However, despite the recent strong drop, precious metals remain significantly higher, with investors nearly completely accounting for 25-basis-point reduction at the upcoming Federal Reserve meeting next week. The evolution of global economic uncertainty will also play an important part in deciding gold prices in the coming days.
Also Read: RBI holds gold reserves valued at USD 95 billion
Additionaly, gold futures rates also fell on Friday morning, ahead of a key US inflation report due later in the day. MCX Gold December futures traded 0.44 per cent lower at ₹123,552 per 10 grams, while MCX Silver December contracts were 0.98 per cent down at ₹147,052 per kg at that time.
“Gold prices fell on Friday, on track to end its nine-week winning streak, pressured by heavy selling after repeatedly hitting record highs in recent sessions. The yellow metal dropped more than 5 per cent early in the week, marking its largest intraday loss in five years. The decline coincided with significant withdrawals from gold-backed ETFs, which saw their largest single-day drop in holdings by tonnage in five months,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities.
Yet, gold prices remain up more than 50 per cent year-to-date, supported by ongoing trade tensions, with focus on trade talks next week between US President Donald Trump and Chinese President Xi Jinping.
“Geopolitical risks also persisted after the US imposed new sanctions on Russia in an attempt to pressure Moscow for a Ukraine ceasefire. Meanwhile, expectations that the Federal Reserve could deliver two more rate cuts by year-end continued to support bullion.
Investors are now focusing on the key CPI report later today, which could influence the monetary policy outlook,” said Trivedi.
A successful trade deal between India and the US could put additional downward pressure on gold prices, while any escalation in US-Russia tensions or further sanctions could help support prices at lower levels.
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