Gold Prices Drop Rs 11,000 from Recent Highs
Gold prices fell to near a three-week low on Monday, influenced by a stronger dollar and reduced trade tensions between the United States and China. On the Multi Commodity Exchange (MCX), gold opened at Rs 1,21,284 per 10 grams, marking a decrease of Rs 224 or 0.18%. In contrast, silver prices saw a rise, gaining Rs 1,087 or 0.73% to reach Rs 1,49,374 per kg. This decline in gold prices comes after a significant drop of nearly Rs 11,000 from its all-time high of Rs 1,32,294 per 10 grams, recorded on October 17.
Global Market Trends
In the international market, spot gold prices decreased by 0.8% to $3,968.76 per ounce, while US gold futures for December delivery fell by 0.5% to $3,978.30. Last week, both gold and silver experienced volatility, with gold December futures settling at Rs 1,21,232 per 10 grams, down 0.23%, and silver December futures closing at Rs 1,48,287 per kg, down 0.37%. Analysts attribute the recent weakness in gold prices to a shift in investor expectations regarding a potential Federal Reserve rate cut this year, following comments from Chair Jerome Powell that were perceived as hawkish.
Factors Influencing Prices
The dollar index has surged to a three-month high, and US 10-year bond yields have surpassed 4%, which has diminished the safe-haven demand for gold. Manoj Kumar Jain of Prithvifinmart Commodity Research noted that Powell’s remarks indicated no guarantees of interest rate cuts in December, further limiting potential gains in precious metals. Despite these challenges, Jain pointed out that ongoing central bank purchases and global uncertainties continue to provide some support for gold and silver prices.
Future Projections
Looking ahead, Jain anticipates that both gold and silver will remain volatile throughout the week, closely tracking fluctuations in the dollar and overall global risk sentiment. He predicts that gold will trade within a range of $3,870 to $4,140 per troy ounce, while silver is expected to fluctuate between $46.50 and $50.50. On the MCX, Jain identifies support levels for gold at Rs 1,20,600 to Rs 1,19,800 and resistance levels at Rs 1,22,000 to Rs 1,22,700. For silver, support is seen at Rs 1,47,000 to Rs 1,45,500, with resistance at Rs 1,50,000 to Rs 1,51,500. He recommends buying gold on dips near Rs 1,20,400 with a stop loss at Rs 1,19,350, targeting Rs 1,22,000, while suggesting silver purchases near Rs 1,47,000 to Rs 1,46,000 for a target of Rs 1,50,000 to Rs 1,51,500.
Gold Prices in Major Cities
In key Indian cities, gold prices are as follows: In Delhi, the price for 22K gold is Rs 91,808, while 24K gold is priced at Rs 98,736 per 8 grams. In Mumbai, 22K gold costs Rs 90,296, and 24K gold is at Rs 97,096 per 8 grams. Chennai sees prices of Rs 90,176 for 22K gold and Rs 96,992 for 24K gold per 8 grams. In Hyderabad, 22K gold is priced at Rs 90,392, with 24K gold at Rs 97,240 per 8 grams.
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