#TrendingNow: Gold Prices Fall below ₹50,000, Silver Continues to Slide
The prices of gold continued to fall sharply on Thursday with a stronger US Dollar and expectations of another rate hike by the US Federal Reserve. “In India, gold rates today fell to lowest in nearly four months when MCX futures dropped 0.7% to ₹49,679 per 10 gram while silver dipped 0.4% to ₹56,765 per kg,” Mint reported on Thursday.
24-carat purity gold was sold at ₹50,300 per 10 grams while silver was priced at ₹56,350 per kg on Wednesday, the report further quoted the Indian Bullion and Jewellers Association. Spot gold in the global markets was down 0.3% at $1,691.63 per ounce, as of 0312 GMT on Thursday, after touching its lowest since September 1 at $1,689.78 earlier in the session, the Economic Times reported.
Why are Global Gold Prices Falling?
“Gold prices continued to remain under pressure this week as worse-than-expected US inflation increased expectations of a jumbo-sized increase in interest rates by the Fed next week. Gold is sensitive to US interest rates. Higher yields increase the opportunity cost of holding non-yielding bullion while boosting the dollar. A stronger US dollar makes gold expensive for buyers holding other currencies,” the Mint report added.
The gold prices are down on the back of a weak US dollar and 10-year treasury yields. The US Federal Reserve also pressurised bullion prices, an Economic Times report quoted an ICICI Direct note.
What’s the Price of Gold in India Today?
Zee News reported an indicative price list of 22-carat gold today in a few major Indian cities (except any taxes or charges):
| City | Indicative price of 22-carat gold (without GST, TCS or any other levies) |
| Chennai | ₹46,800 |
| Mumbai | ₹46,200 |
| Delhi | ₹46,350 |
| Kolkata | ₹46,200 |
| Bengaluru | ₹46,250 |
| Hyderabad | ₹46,200 |
Final Word
With gold prices dipping further, investors haven’t shown much interest in investing in the safe haven. According to media reports, the holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.24% to 960.56 tonnes on Wednesday from 962.88 tonnes on Tuesday.
These coming weeks seem to be crucial. What do you think about the current situation? Do you think gold prices would dip further? Let us know in the comments sections and keep following #TrendingNow for more personal finance tidbits!
Disclaimer
This article is solely for educational purposes. Navi doesn't take any responsibility for the information or claims made in the blog.
