Gold becomes cheaper after becoming record expensiveGold becomes cheaper after becoming record expensive
Gold fell by Rs 470 to Rs 59,480 per 10 grams in the Delhi bullion market on Tuesday amid a weak global trend. HDFC Securities gave this information. In the previous trade, gold had closed at Rs 59,950 per 10 grams.
Silver also declined by Rs 420 to Rs 68,550 per kg. In the overseas market, gold and silver were trading lower at $1,967 an ounce and $22.39 an ounce, respectively. Comex gold prices declined on Tuesday. Gold prices softened after hovering around Rs 60000 per 10 grams in early trade today.
Softened gold price
Gold price on MCX is witnessing constant volatility since this morning. Gold prices declined on Tuesday as investors turned cautious ahead of the Federal Open Market Committee (FOMC) meeting.
Experts believe that gold may remain in this range for the whole session as investors are apprehensive about the outcome of the FOMC meeting starting today. In the international market, the gold price will remain in the range of $1,950 to $2,010 per ounce, while in the domestic market, it is expected to remain in the range of Rs 58,700 to Rs 60,500 per 10 grams.
Banking crisis in America
Piyush Parimal, a gold trader based in Mumbai, believes that gold prices will remain in the same range today as investors await the outcome of the FOMC meeting starting today. However, the focus will not be on the US Fed rate hike, but on the US Fed statement on the bank crisis in the US, as investors across the globe are looking forward to a red card from the US central bank.
Piyush Parimal said that the US Fed is expected to remain less aggressive. If the Fed raises rates, the increase will not exceed 25 bps, as inflation is driven more by political factors such as the Russia-Ukraine war than by any economic factor.
If the Fed announces a concrete road map to bail out US banks from the crisis, it will weaken the dollar index, resulting in further downside in gold prices.
All eyes on Fed after ECB
After the ECB announced a 50 bps rate hike last week, all eyes are now on the Fed’s policy meeting to be held from March 21 to 22, 2023. The US Fed is expected to hike rates by 25 bps. However, the prospect of stagnation is looming large. Let us tell you that on Monday MCX gold had reached the highest level of Rs 60,455. Meanwhile, silver futures traded higher by Rs 303, or 0.44 per cent, at Rs 68,804.
Where is the cheapest gold
- 10 grams of 24 carat gold in Delhi is Rs 60,150.
- In Jaipur, 10 grams of 24 carat gold is being sold for Rs.60,150.
- Gold price in Patna is Rs.60,050 for 10 grams of 24K.
- Gold price in Kolkata is Rs.60,000 for 10 grams of 24K.
- In Mumbai, 10 grams of 24 carat gold is being sold at 60,000.
- 60,050 for 10 grams of 24K gold in Bangalore.
- 24 carat 10 grams gold in Hyderabad is worth Rs 60,000.
- Gold price in Chandigarh is Rs.60,150.
- 24 carat gold rate in Lucknow is Rs 60,150 for 10 grams.
- India is the second largest consumer of gold
India is the second largest consumer of gold after China. A major part of the gold requirement is met by imports and by recycling domestic bullion locally. Apart from international prices, import duties and other taxes play an important role in determining domestic gold rates.
Let us tell you that bullion is seen as a hedge against inflation, but bond yields and the dollar rate also have an impact on the prices of the precious metal.
