Mallika Dureja
Gold prices in India reached a new high Thursday, mirroring robust worldwide prices. In the local futures market, MCX gold increased by 0.4% to 57050 per 10 gramme, while silver increased by 0.5% to 68301 per kg. Spot gold increased 0.2% to $1,935.69 per ounce in global markets, aided by a lower US dollar. Investors are looking forward to the release of fourth-quarter GDP growth projections in the United States later this week. Silver, among other precious metals, rose 0.4% to $23.54 per ounce.
The US dollar has weakened in recent weeks as expectations for smaller rate hikes have increased. A weakening currency makes dollar-priced bullion more accessible to many buyers.
“COMEX Gold finished Monday’s session flat after sliding as low as $1912/oz. In today’s early session, Comex gold is trading near $1936/oz, up about 0.40%. Yesterday, the yellow metal experienced a violent swing, with the price first correcting towards $1912/oz due to a strong US dollar and rising bond yields. “However, the dollar wiped out the gains that helped gold recapture $1928/oz and closed on a flat note,” said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.
Also read: RBI gives people more time to sign new contracts for existing lockers
“Traders will be looking at a flood of economic data from the United States this week ahead of the FOMC meeting next week. Today’s attention will be on PMIs from the Eurozone, the United Kingdom, and the United States, followed by the fourth-quarter GDP report from the United States on Thursday,” he added.
Gold prices in India have risen by 7,000 rupees per gramme since November, owing to a decline in US bond yields and a weaker currency, which has fueled a comeback in worldwide rates.
देश में शादियों का सीज़न चल रहा है. इस दौरान सोने-चांदी की डिमांड बढ़ने से इनके दाम भी सातवें आसमान पर रहता है. इस बीच, पिछले कई दिनों से मल्टी कमोडिटी एक्सचेंज पर सोने के भाव में उतार-चढ़ाव हो रहा है. जिसके बाद आज सोने के भाव में मामूली कमी आई है. #goldprice pic.twitter.com/qXUqELOYCe
— GNTTV (@GoodNewsToday) January 23, 2023
“On the investment demand front, SPDR gold ETF holdings grew to 917.05 tonnes as on 20th January 2023, from 912.14 tonnes in the previous week. The deteriorating prognosis for the global economy, notably the United States, and the potential of a Fed pivot have prompted some inflows. Having said that, India’s gold imports fell 79% year on year in December, to the lowest level in decades, as rising domestic prices likely impacted retail investor demand. India’s gold imports in 2022 will be 706 tonnes, down from 1,068 tonnes the previous year. Prospects of a US recession, cooling inflation and labour market, and a Fed shift may continue to support gold prices, according to Kotak Securities in a note.
