1 week ago
In early trading on Wednesday, November 13, the price of gold in India saw a modest dip. The price of 24-carat gold fell by ₹10, with 10 grams priced at ₹77,280, while 22-carat gold also slipped by ₹10, trading at ₹70,840 per 10 grams, as reported by GoodReturns.
Globally, gold prices inched higher after a significant drop in the previous session, spurred by a round of bargain-hunting among investors.
Spot gold rose by 0.4% to $2,608.18 per ounce as of 0200 GMT, following a low point reached on Tuesday (November 12) not seen since September 20.
US gold futures also climbed, up by 0.3% to $2,614.10 per ounce.
The slight recovery in gold’s global price reflects cautious optimism from investors awaiting the US inflation report, which could provide clearer indications of the Federal Reserve’s next moves on interest rates.
Kelvin Wong, Senior Market Analyst for Asia Pacific at OANDA, noted, "There is currently some bargain hunting going on as prices fell below the $2,600 per ounce mark."
Recent dips were largely driven by a stronger dollar, itself a result of market expectations that the Fed may delay further rate cuts, given inflationary pressures.
US Consumer Price Index (CPI) data, due later in the day, remains the focus for markets.
A subdued inflation reading could revive gold prices, as lower inflation might lower the chances of additional rate hikes by the Fed.
"If the CPI and PPI numbers show that inflation trend is still pretty much contained, then gold could make a move up towards $2,650 per ounce," Wong added.
Additionally, traders are watching the Fed’s December policy meeting closely. CME's FedWatch Tool indicated a 60.3% chance of a 25-basis-point rate cut, a drop from 77.3% a week prior, signalling softer expectations for easing as inflation continues to exceed the Fed’s 2% target.
Higher rates tend to curb gold's appeal, as gold yields no interest and is often viewed as a hedge against inflation.
In the Indian context, analysts remain cautious about the near-term outlook for gold prices.
Jateen Trivedi, VP Research Analyst at LKP Securities, said, "The current downtrend suggests that further weakness could persist, potentially driving prices down towards ₹72,000 per 10 grams if COMEX gold remains below $2,600 per ounce and tests the $2,500 per ounce level in the upcoming sessions."
