Gold prices experienced a decline on Monday as the market reacted to diminishing expectations of an imminent rate cut in the US. This led to a strengthening of the dollar and bond yields, impacting the value of gold. Spot gold fell by 0.4 per cent to $2,037.39 per ounce, while US gold futures dropped by 0.3 per cent to $2,043.60 per ounce. Similarly, spot silver also experienced a decline by 0.6 per cent, trading at $23.01 per ounce.
In India, the impact of these global trends was also felt, as gold prices in the country witnessed a downward trend on Monday. On the multi-commodity exchange (MCX), gold futures maturing on February 05, 2024, traded at Rs 62,249, down by 0.49 per cent. Similarly, silver futures maturing on the same date also registered a decline of 0.37 per cent, trading at Rs 72,315.
The retail market also mirrored this decline, with the cost of 10 grams of 22-carat gold decreasing by Rs 200 to Rs 57,800 and the 24-carat gold price dropping by Rs 220 per 10 grams to Rs 63,050. Additionally, the 18-carat gold stood at Rs 47,290 per 10 grams, lower by Rs 160.
In various major Indian cities, the price of gold varied, with Chennai, Mumbai, Delhi, Kolkata, Bangalore, Hyderabad, Kerala, Pune, and Ahmedabad all experiencing fluctuations in the value of 18K, 22K, and 24K gold. However, it is important to note that these prices are mentioned per 10 grams without taking into account state-levied taxes, GST, and other factors.
Additional Insight:
The decline in gold prices can be attributed to various factors such as the strengthening of the US dollar and the impact of the COVID-19 pandemic on the global economy. As investors seek safe-haven assets like gold during times of uncertainty, any signs of economic recovery or stability can lead to a reduction in demand and subsequently impact the price of gold. Furthermore, the performance of other financial markets and geopolitical events can also influence the value of gold, making it a commodity that is subject to a wide range of external factors.
