Gold prices had a significant decline of 0.30 percent in comparison to the previous week’s results. As of February 2024, gold futures contracts on the Multi Commodity Exchange (MCX) concluded at ₹62,390 per 10 gm level at the end of the week, following a marginal intraday gain of ₹28 per 10 gm. In the international marketplace, the spot gold price stood at $2,048 per ounce.
Silver prices came in at 72,573 per kg level on MCX, while on the global scale, this precious white metal ended at 23.18 per ounce level. The fall in the prices of bullions was attributed to lower domestic demand resulting from the month of Kharmas. Additionally, the Indian National Rupee had strengthened against the US dollar, reaching a four-month high, adding to the pressure on the MCX gold rate in the domestic market.
Despite the weaker Indian inflation data, experts theorized that the pressure on gold prices was from the US Consumer Price Index (CPI) data, which showed a significant surge in annual inflation and monthly CPI, signaling a rise in demand for gold. However, they predicted that gold may trade in the range of $2,010 to $2,080 per ounce in the international market and ₹62,200 to ₹63,500 per 10 gm range on MCX.
Market analysts emphasized that the escalating tensions in the Middle East could heighten demand for gold, further bolstering its safe-haven appeal. Moreover, the month of Kharmas ending with Lohri celebrations might lead to fresh demand in the physical market post-Sankranti celebrations across India.
Looking ahead, gold prices could remain range-bound, but investors are advised to maintain a buy on a dip strategy due to the impact of Middle East tension on yellow metal and other precious metals. It is important to note that the views and recommendations provided by individual analysts or broking companies should be verified with certified experts before making investment decisions.
Insight: The movement of gold prices and the factors influencing its performance in the market is significant for traders and investors alike. Understanding the underlying causes of price fluctuations and keeping abreast of international market trends is essential for making informed decisions and capitalizing on opportunities.
