Gold Price in India: Gold futures traded lower on Friday, September 24, with the yellow metal reflecting global trends after the US Federal Reserve’s policy statement predicting an anticipated hike in interest rates. On the Multi Commodity Exchange (MCX), gold futures due for delivery on October 5 were last seen down Rs 134 – or 0.29% – to Rs 45,922, compared to at their previous close of Rs 46,056. Silver futures due for delivery on December 3 fell 0.35% to Rs 60,577 from a previous close of Rs 60,789.
Many policymakers at the US Federal Reserve are now planning to start raising interest rates next year, reflecting a growing consensus that tighter policy will be needed to control inflation. The rapid pace of the interest rate hike relative to the central bank’s projections in June comes as the US economy continues to recover rapidly after a brief period of recession last year.
In addition, Indian stock indices today hit new all-time highs with the benchmark BSE – S&P BSE Sensex breaking through the 60,000 mark for the first time and Nifty breaking through its psychological level of 17,900 thanks to gains in ‘stocks such as ICICI Bank, HDFC Bank, Tata Consultancy Services. So far, Sensex has reached an all-time high of 60,333 and the Nifty 50 Index has reached an all-time high of 17,947.65.
On Friday, the rupee slipped 13 paise to 73.77 against the US dollar in an early trading session following other Asian currencies and a stronger greenback in global markets. If the rupee weakens against the dollar, gold prices may appreciate in rupee terms.
What the analysts say:
Mr. Amit Pabari, MD, CR Forex:
Globally, the dollar index remains consolidated near 93.10 levels as the 10-year Treasury yield jumped nearly 14 basis points to 1.40%, a day after the Fed indicated that it would probably start to decline from November.
Investors will also be attentive to the speech by Fed Chairman Powell, expected today for a new boost in the dollar.
During the last session, the rupee traded on a stable to higher note, reflecting positive actions and steady inflows. However, the continued rise in crude oil prices to a three-year high due to supply disruptions could rock feelings. Going forward, the dollar moving above the debt ceiling and the risk of potential fallout from Evergrande will cause the USDINR pair to move. ”
M. Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities:
COMEX’s gold trade was little changed near $ 1,749 / oz after falling sharply 1.6 percent yesterday. The price of gold is weighed on firm equity markets, lower investor interest and the Fed’s projection of anticipated rate hikes. However, support prices are worries of global growth amid disappointing economic data and worries about the Chinese economy.
The sharp drop in gold has shaken market sentiment, but a sustained decline is unlikely as economic data and rising commodity prices reflect growing challenges in the global economy. ”