Gold price declines Rs 500/10 gm on MCX, increases by Rs 200 in physical markets; check latest rates
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In the physical market, the average gold of 24-Karat purity in India was Rs 55,750 per 10 gram on Friday. In Chennai, 24K purity gold is quoted at Rs 57,030 per 10 gram, in Mumbai Rs 55,960, in Delhi 56,110 and in Kolkata at Rs 56,960 per 10 gram on today.
Prices of precious metals came down from two-year high levels witnessed during the first week of 2023.
Gold prices got support from a retreat in US dollar from highs amid US Fed’s indication of slowing interest rates in the year ahead.
“The major factor that has pushed gold higher is the retreat in US dollar from the highs amid Fed’s stance of slowing the pace of Interest rate hikes. The minutes for Dec FOMC meeting revealed Fed’s concerns on inflation and that the interest rates might remain higher for longer although the pace might drop. This has brought down the 10-year US bond yields to 3.70%. US Dollar Index also dropped after a sharp rise seen a day before when rose as high as 105. Although the momentum in gold is positive it will continue to cue from the US economic data prints and the dollar,” wrote Ravindra V.Rao, CMT, EPAT, VP-Head Commodity Research, Kotak Securities Ltd.
On Thursday, prices of yellow metal slipped from a seven-month high as investors squared positions ahead of the crucial US jobs data that can potentially influence Fed’s interest rate action.
US payrolls increased more than expected in December while jobless claims declined to a three-month low.
Spot gold fell 0.3% to $1,848.40 per ounce by 1106 GMT, after hitting its highest since June 13 in the previous session. U.S. gold futures also edged 0.3% lower to $1,854.20.
