Gold prices in India experienced a decline on Monday, with data from India’s Multi Commodity Exchange (MCX) showing a drop in prices.
The price of gold was recorded at 72,319 Indian Rupees (INR) per 10 grams, representing a decrease of INR 582 compared to Friday’s price of INR 72,901.
Furthermore, gold prices in futures contracts also saw a reduction to INR 71,790 per 10 grams from the previous rate of INR 71,843 per 10 grams.
Silver futures contracts, on the other hand, experienced an increase in prices to INR 83,273 per kilogram from the earlier rate of INR 82,813 per kilogram.
| Major Indian city | Gold Price |
|---|---|
| Ahmedabad | 74,965 |
| Mumbai | 74,760 |
| New Delhi | 74,870 |
| Chennai | 74,970 |
| Kolkata | 74,935 |
Global Market Movers: Comex Gold price cheers haven demand amid Iran-Israel conflict
- Iran’s direct attack on Israeli territory has heightened the risk of a broader regional conflict in the Middle East, bolstering the safe-haven appeal of Comex Gold prices on Monday.
- While Israeli officials seek retaliation, the US has clarified its stance of not participating in offensive actions against Iran, which tempered immediate market reactions and capped further gains for XAU/USD.
- Following the release of hotter-than-expected US consumer inflation figures last week, investors have delayed their expectations for the Federal Reserve’s first interest rate cut to September from June.
- Traders are now considering fewer rate cuts in 2024 than initially projected by the Fed, allowing the US Dollar to maintain strength at near its highest levels since early November.
- Due to the Fed’s hawkish outlook and a bullish USD, there may be a reluctance among investors to make significant bets on gold ahead of key US data releases such as Retail Sales and the Empire State Manufacturing Index.
Gold FAQs
Gold has been historically valued as a safe-haven asset and a store of value apart from its use in jewelry. It serves as a hedge against inflation and depreciating currencies due to its independence from any specific issuer or government.
Central banks are significant holders of gold, utilizing it to bolster their reserves and instill confidence in the economy and currency during times of volatility. Recent data shows a notable increase in gold purchases by central banks, particularly from emerging economies like China, India, and Turkey.
Gold typically exhibits an inverse correlation with the US Dollar and US Treasuries, major reserve assets. Its price reacts to geopolitical tensions, economic instability, and shifts in the value of the Dollar. Additionally, gold tends to move in the opposite direction of risk assets like stocks.
Various factors influence gold prices, including geopolitical events, economic data releases, and fluctuations in the US Dollar. Investors often turn to gold as a safe haven during uncertain times, driving its price up, while interest rate changes and Dollar strength can impact its value as well.
Gold prices in India experienced a decline on Monday, with data from India’s Multi Commodity Exchange (MCX) showing a drop in prices.
The price of gold was recorded at 72,319 Indian Rupees (INR) per 10 grams, representing a decrease of INR 582 compared to Friday’s price of INR 72,901.
Furthermore, gold prices in futures contracts also saw a reduction to INR 71,790 per 10 grams from the previous rate of INR 71,843 per 10 grams.
Silver futures contracts, on the other hand, experienced an increase in prices to INR 83,273 per kilogram from the earlier rate of INR 82,813 per kilogram.
| Major Indian city | Gold Price |
|---|---|
| Ahmedabad | 74,965 |
| Mumbai | 74,760 |
| New Delhi | 74,870 |
| Chennai | 74,970 |
| Kolkata | 74,935 |
Global Market Movers: Comex Gold price cheers haven demand amid Iran-Israel conflict
- Iran’s direct attack on Israeli territory has heightened the risk of a broader regional conflict in the Middle East, bolstering the safe-haven appeal of Comex Gold prices on Monday.
- While Israeli officials seek retaliation, the US has clarified its stance of not participating in offensive actions against Iran, which tempered immediate market reactions and capped further gains for XAU/USD.
- Following the release of hotter-than-expected US consumer inflation figures last week, investors have delayed their expectations for the Federal Reserve’s first interest rate cut to September from June.
- Traders are now considering fewer rate cuts in 2024 than initially projected by the Fed, allowing the US Dollar to maintain strength at near its highest levels since early November.
- Due to the Fed’s hawkish outlook and a bullish USD, there may be a reluctance among investors to make significant bets on gold ahead of key US data releases such as Retail Sales and the Empire State Manufacturing Index.
Gold FAQs
Gold has been historically valued as a safe-haven asset and a store of value apart from its use in jewelry. It serves as a hedge against inflation and depreciating currencies due to its independence from any specific issuer or government.
Central banks are significant holders of gold, utilizing it to bolster their reserves and instill confidence in the economy and currency during times of volatility. Recent data shows a notable increase in gold purchases by central banks, particularly from emerging economies like China, India, and Turkey.
Gold typically exhibits an inverse correlation with the US Dollar and US Treasuries, major reserve assets. Its price reacts to geopolitical tensions, economic instability, and shifts in the value of the Dollar. Additionally, gold tends to move in the opposite direction of risk assets like stocks.
Various factors influence gold prices, including geopolitical events, economic data releases, and fluctuations in the US Dollar. Investors often turn to gold as a safe haven during uncertain times, driving its price up, while interest rate changes and Dollar strength can impact its value as well.
