 |
|
The global precious metals market experienced fluctuations on Wednesday, with gold prices declining in India while silver prices rebounded. These movements are attributed to a combination of international market trends and economic data released in the United States. In India, gold prices fell by Rs 50, reaching a four-week low of Rs 77,750 per 10 grams, according to the All India Sarafa Association. This decline follows a previous day's closing price of Rs 77,800 per 10 grams for 99.9% purity gold.
However, silver prices showed a positive shift, rising by Rs 1,200 to Rs 92,500 per kg, reversing a two-day downward trend. The previous day's closing price for silver was Rs 91,300 per kg. The price of 99.5% purity gold also experienced a Rs 50 decrease, closing at Rs 77,350 per 10 grams, following a Tuesday closing price of Rs 77,400 per kg.
Futures trading on the Multi Commodity Exchange (MCX) exhibited contrasting trends. Gold contracts for December delivery rose by Rs 204, or 0.27%, to trade at Rs 75,105 per 10 grams. Conversely, silver contracts for December delivery surged by Rs 760, or 0.85%, to reach Rs 90,087 per kg on the exchange.
Analysts attribute the fluctuations in gold prices to anticipation surrounding the release of US Consumer Price Index (CPI) data. Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, suggests that the CPI's trajectory toward the Federal Reserve's 2% target could support gold in the long term by potentially influencing continued interest rate cuts.
However, other analysts highlight the impact of the US election and its potential implications on global markets. Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, notes that the rise in the US dollar and Treasury yields following the election negatively impacted precious metals prices. Kaynat Chainwala, AVP of Commodity Research, Kotak Securities, adds that investor concerns center around potential US-China trade tensions, especially given the recent appointments in the US cabinet adopting a tough stance on China.
The World Gold Council's report reveals global gold ETF outflows of approximately USD 809 million in the first week of November, marking a break in a six-month streak of inflows. While North American funds led these outflows, strong demand from Asia provided some counterbalance, indicating the presence of anxieties regarding potential US-China trade disputes.
In the global market, Comex gold futures gained USD 8 per ounce, or 0.31%, reaching USD 2,614.30 per ounce. Meanwhile, silver traded 0.85% higher at USD 31.02 per ounce in the Asian market. Pranav Mer, VP of Research (Commodity & Currency) at BlinkX and JM Financial, highlights the influence of a stronger US dollar and elevated treasury yields on gold's current position near a two-month low, leading up to the release of US macroeconomic data and statements from Federal Reserve Chair Jerome Powell and other central bank officials.
Source: Gold Price Drops, Silver Rises: Latest Market Updates