In the domestic bullion market, gold and silver prices declined for the third consecutive trading session on Monday. Under the pressure of a strengthening rupee and weakness in the global market, the price of 24 carat gold (99.9% purity) fell by Rs 700 to ₹ 1,25,400 (including tax) per 10 grams. At the same time, gold of 99.5% purity is now available at ₹ 1,24,800. Selling pressure continued in silver too and it became cheaper by ₹ 1,000 per kg and closed at ₹ 1,55,000 (including tax).
Rupee strengthened by 50 paise
In the interbank foreign exchange market, the Indian rupee closed at 89.16 with a rise of 50 paise against the dollar. Dollar selling by the banking sector and importers and softening of crude oil prices supported the rupee.
experts’ analysis
Jatin Trivedi, Vice President, LKP Securities, said that gold opened weak due to the dual pressure of strong rupee and weakness in the international market. Additionally, HDFC Securities Senior Commodity Analyst Sawmil Gandhi said domestic gold showed more volatility than global benchmarks due to rupee fluctuations.
condition of international market
Spot gold: $4,064.35 per ounce (slight decline)
Spot Silver: $50.09 per ounce (+0.12%)
Kotak Securities analyst Kainaat Chainwala said that the US economic data coming this week (retail sales, PPI, jobless claims etc.) will be important. If the data comes out strong, then the possibility of Fed rate cut in December may weaken, which will increase further pressure on gold. Renisha Chainani, research head at Augmont, said bullion is currently trading in a tight range due to mixed US jobs data and uncertainty over Fed policy, but sentiment is inclined towards bearish.
Central banks’ purchases continue
China’s central bank increased its gold reserves by 7.409 million troy ounces in October – the 12th consecutive month. According to the World Gold Council, global central banks bought 220 tonnes of gold in the third quarter, up 28% from the previous quarter. In the long term, this demand is giving a strong base to gold. The latest statement by New York Fed President John Williams remains hopeful of a rate cut in December, due to which there is a possibility of a rise in prices in the coming days.
Latest Business News