Web Stories Thursday, May 23
Gold prices fell more than 1% on Monday (April 22) as concerns of a broader conflict in the Middle East eased prompted investors to embrace riskier assets. This reduced the appeal of gold as a safe-haven investment, experts said.

As of 0929 GMT, spot gold recorded a 1.2% decline, settling at $2,362.09 per ounce, while US gold futures saw a 1.6% drop to $2,376.10, according to news agency Reuters.

Back home,  gold for June delivery fell by 1.04% to reach ₹72,050 per 10 grams on the Multi Commodity Exchange (MCX).

Here’s a table displaying the gold rates in various cities in India (as of April 22):

City 22 Carat Gold Rate (per 10 grams) 24 Carat Gold Rate (per 10 grams)
Delhi ₹68,200 ₹74,380
Mumbai ₹68,040 ₹74,230
Chennai ₹68,840 ₹75,100
Kolkata ₹68,040 ₹74,230

Analysts attribute the decline in gold prices to diminished likelihood of immediate rate cuts by the US Federal Reserve.

Reports suggest that a rate cut may not materialise until September, which has dampened the demand for gold as a hedge against inflation.

Additionally, the strengthening of the US dollar and rising bond yields have further propelled the downward trend in gold prices.

The recent drone strike by Israel on Iran, which was met with subdued responses from Tehran, has alleviated concerns of an escalation in tensions between the two nations.

This has also diminished the need for safe-haven assets like gold.

Despite the current setback, analysts remain optimistic about the long-term prospects of gold.

Citi research forecasts a surge in yellow metal during the second half of 2024, with gold projected to reach $2,500 per ounce.

However, there may be a temporary pullback in prices before the end of the second quarter, it said.

In a recent conversation with CNBC Awaaz, Mahendra Luniya, Chairman of Vighnaharta Gold, projected that gold rates may reach ₹1.68 lakh per 10 grams by the year 2030.

ALSO READ | Looking to buy physical gold amid bullish outlook? Know purchase limits and taxation rules


Leave A Reply

© 2024 Wuulu. All Rights Reserved.