Gold prices dipped in India on Tuesday, according to data from India’s Multi Commodity Exchange (MCX). The cost of gold stood at 61,120 Indian Rupees (INR) per 10 grams, down INR 259 from the previous day. The price for gold futures contracts, on the other hand, increased to INR 61,262 per 10 grams from INR 61,117 per 10 grams. Meanwhile, silver futures contracts saw a decrease to INR 72,068 per kilogram from INR 71,864 per kilogram.
Furthermore, in major Indian cities, the price of gold varied, with Ahmedabad having the highest price at 63,260 INR per 10 grams, and Mumbai having the lowest at 63,090 INR per 10 grams.
Looking at the global market, several factors are currently influencing gold prices. The softer US Dollar and geopolitical risks are underpinning the Comex Gold price. An example of this is a recent report that Iran-backed Houthi rebels in Yemen fired a land-based cruise missile, which is expected to bolster the safe-haven Comex Gold price. Moreover, recent upbeat US employment figures have led traders to believe that the Federal Reserve could delay interest rate cuts until May of next year, thus impacting market sentiment.
It’s important to note that gold prices are influenced by a wide range of factors, including geopolitical instability, recession fears, and changes in interest rates. The precious metal is widely regarded as a safe-haven asset and a hedge against inflation and depreciating currencies.
Additionally, central banks are the biggest holders of gold, often using the metal to support their currencies during turbulent times and to diversify their reserves, which in turn can impact gold prices. The inverse correlation between gold and the US Dollar and US Treasuries, as well as shifts in risk markets, also affects gold prices significantly.
In conclusion, the outcome of the highly-anticipated two-day FOMC monetary policy meeting, along with geopolitical developments and changes in economic data, is expected to continue influencing gold prices in the near future.
