Gold prices in India rose on Friday, based on data from India’s Multi Commodity Exchange (MCX). The gold price increased to 62,196 Indian Rupees (INR) per 10 grams, up INR 69 from Thursday’s price of INR 62,127. Gold futures contracts also saw a rise, reaching INR 62,500 per 10 gms from INR 62,466 per 10 gms. On the other hand, the prices for silver futures contracts decreased to INR 74,465 per kg from INR 74,313 per kg.
Major Indian cities showed varying gold prices, with Ahmedabad at 64,355 INR, Mumbai at 64,145 INR, New Delhi at 64,230 INR, Chennai at 64,330 INR, and Kolkata at 64,305 INR.
Recent trends in the global market, such as speculations of a change in US Federal Reserve policy and the cooling US labor market, have impacted the prices of commodities. A dovish stance by the Federal Reserve is expected, and traders are pricing in the possibility of a rate cut as early as March 2024. The 10-year US government bond yield moving away from a three-month low has lent support to the US dollar, thereby affecting the non-yielding metal.
Geopolitical tensions have been another contributing factor to gold prices. The calm in the Middle East and the risk-on rally in the US equity markets have also had an impact on the safe-haven XAU/USD.
Looking ahead, the US monthly employment details and the Fed’s future policies will likely influence gold prices. Any negative surprise in the upcoming data could force the Fed to soften its hawkish tone, benefiting the commodity amid concerns of an economic downturn and geopolitical tensions.
Insight:
With the global market constantly influencing gold prices, it is essential for investors to remain aware of shifting trends and global economic conditions. The role of the US Federal Reserve and geopolitical events, along with the inverse correlations with the US Dollar and US Treasuries, make gold a unique and volatile asset. Additionally, in troubled times, gold often sees a surge as it is considered a safe-haven asset and a hedge against inflation and depreciating currencies.
