The recent U.S. presidential election result has caused a dramatic shift in the gold market, as prices dropped to a three-week low due to a surge in the value of the dollar. Investors are now turning their attention to the upcoming Federal Reserve policy meeting for potential clues on the pace of interest rate cuts. The uncertainty surrounding President Trump's policies, including the possibility of higher tariffs, is also making it difficult for gold prices to find direction. Despite potential inflation risks, safe haven demand for gold remains strong.
Every Dhanteras, gold remains a popular choice for Indian investors, despite high prices. Leading banks offer secure options, with certified gold coins available through trusted channels. However, the high premium and limitations on resale may make alternative investments, such as gold ETFs, digital gold, and sovereign gold bonds, more appealing for savvy investors looking for liquidity and flexibility.
As Dhanteras, the auspicious occasion to invest in precious metals, approaches, online shopping platforms like Blinkit offer a range of gold and silver coins from well-known jewelers. With prices varying across cities, here's a quick look at the latest rates and some popular Dhanteras shopping tips for items such as silverware and utensils that symbolize prosperity and abundance.
As the world's third largest consumer of gold, India saw record-high prices for the precious metal on August 04, 2024. Retail gold prices in India reached nearly Rs 70,000 per 10 grams, with 24-carat gold priced at Rs 70,580 per 10 grams. This increase in price can be attributed to high consumer demand and global economic factors. The cost of silver also saw an increase, with its price standing at Rs 85,500 per kilogram.
The MCX gold rate and spot gold price faced downward pressure as investors wait for the release of US inflation data. Experts recommend buying gold on dips, expecting potential Fed rate cut speculation if the inflation figures come out positive. The price range for MCX gold is currently between ₹71,000 to ₹72,000 per 10 grams, while spot gold oscillates between $2,310 and $2,340 per ounce. A weakening US dollar index and the expectation of a Federal Reserve rate cut also contribute to the fluctuation in gold prices.
Weaker-than-expected U.S. producer inflation statistics caused gold prices to bounce back after dropping to a low of $2,303.84 per ounce. The unexpected decline in inflation has increased expectations for two rate cuts by the Federal Reserve in 2024, as traders now predict a 50 basis point reduction by the end of the year. This news comes after the Fed's decision to keep interest rates unchanged on Wednesday, along with the release of underwhelming consumer price index data. Silver, palladium, and platinum also saw declines in their prices.
As Akshaya Tritiya, a highly auspicious day for investment, approaches, Gold prices have witnessed a remarkable increase of around 18% in the last year. The India Bullion and Jewellers Association reports that gold is currently trading at Rs 71,502 for 10 grams, with a purity of 999. Many experts suggest that this is an opportune moment to invest in gold, as the market trend is on the rise and expected to continue in the near future. Despite the delay in rate cuts by the Fed, gold has remained resilient, with small corrections and an overall upside trend. With hopes of another rate cut in September and weak US jobs data, gold is predicted to perform well in the coming days.
Amidst the ongoing Israel-Iran conflict and the upcoming Indian elections, market expert Ajay Bagga predicts that crude oil prices may be affected and gold prices may continue to rise. In addition, he mentions that the market is eagerly anticipating the release of BJP's manifesto, as it may contain policies that could impact various industries. Bagga shares his insights and recommendations on navigating the market during these uncertain times.
On March 29, 2024, gold prices in India experienced an overall increase, with the average price for 10 grams of 24-carat gold reaching Rs 68,730 and 22-carat gold reaching Rs 63,000. This surge is attributed to India's high demand for gold, mainly for the jewellery industry. In Delhi, the price for 10 grams of 22-carat gold is approximately Rs 63,150, whereas 10 grams of 24-carat gold is priced at around Rs 68,880, indicating a significant increase in the retail gold market. Meanwhile, the silver market also saw an upward trend, reaching Rs 77,800 per kilogram.
The Canadian market finished the week strong, with the S&P/TSX Composite Index reaching a new record high thanks to encouraging GDP data and higher oil and gold prices. Materials and energy stocks saw significant gains, while Hut 8 Corp, Seabridge Gold, and BRP Inc all reported positive financial results. Other major gainers in the session included Teck Resources, Bank of Montreal, and Brookfield Infra Partners.