Athira Sethu
Kochi, 12 November 2024
Gold prices in India is trending downwards, bringing cheers for buyers. Post the US election results, and appreciating dollar are seen as factors behind easing of yellow metal prices.
As of 10:00 a.m, the Bullion Association of India reports that gold is hovering around Rs 75,700 level. In domestic market, rates have gone down, as per the trends set by the global markets.
Gold prices have been declining since October 31. The present rates came very close to the lowest level of the month, when the price on October 9 had dipped to Rs 75,060. However, gold rates had gone up before the festive season.
There is a general trend of price decline along the global trends, especially after the US elections. There has been a striking increase in the strength of the US dollar that has actually contributed much to pushing down gold prices. Besides, there has been a sign of de-escalation in global political tensions, thus reducing demand for gold as a safe haven option.
Gold prices hit a one-month low in global markets. On Monday trading, the international market price of gold declined to $2,610 per ounce, its lowest level since October 10. This is because of an appreciating US dollar that in a way increased the cost of purchasing gold for other currency-holding investors. Based on the latest statistics, gold is still selling at a slightly lower level at $2,616.35 per ounce.
On India’s Multi Commodity Exchange (MCX), gold futures for December 5 are trading at Rs 75,521, indicating a further deterioration in prices.
According to the World Gold Council, the price of gold worldwide stands at $2,622 per ounce. Since October 30, prices have been falling as investors lost focus in gold and turned to equities after the US elections.
Overall, the gold price has kept moving southward, both globally and domestically, as continued dynamics pressure the precious metal lower, coupled with a host of factors including a strong dollar, changing investor behavior, and more.
