Gold Prices in India Decline by Rs 600 to Rs 1.26 Lakh per 10 Grams
Gold prices in the national capital declined by Rs 600 to Rs 1,26,100 per 10 grams on Friday, tracking a weak global trend, according to the All India Sarafa Association. The precious metal of 99.5% purity depreciated by Rs 600 to Rs 1,25,500 per 10 grams (inclusive of all taxes).
Impact on Indian Investors
The decline in gold prices is likely to impact Indian investors who have been investing in gold as a hedge against inflation and currency fluctuations. With the Indian economy growing at a rapid pace, investors are looking for alternative investment options to diversify their portfolios. However, the decline in gold prices may not be a cause for concern for Indian investors, as the metal is still considered a safe-haven asset.
Silver Prices Also Decline
In the local bullion, silver prices also tumbled by Rs 2,000 to Rs 1,56,000 per kilogram (inclusive of all taxes). The decline in silver prices is likely to impact Indian industries that rely heavily on silver, such as the jewellery industry.
Global Market Trends
On the global front, spot gold was trading 0.38% lower at $4061.91 per ounce while silver futures fell by 2.13% to $49.56 per ounce. The decline in global gold prices is likely to impact Indian investors who have been investing in gold through gold ETFs or other investment options.
US Jobs Data Strengthens Federal Reserve
Renisha Chainani, Head – Research at Augmont, said that a better-than-expected US jobs data has strengthened predictions that the Federal Reserve would not lower interest rates at its December meeting, which has caused precious metals to trade mutedly. The highly anticipated US Labour Department report, which was postponed due to the federal government shutdown, revealed that nonfarm payrolls climbed by 119,000 in September—more than twice the projected gain of 50,000.
Futures Trade
In futures trade, gold prices pared losses in the second half of the day due to a sharp fall in the rupee against the US dollar. The most-traded December contract of the metal rose by Rs 1,168 or 0.95% to Rs 1,23,895 per 10 grams on MCX. The far-month February contract jumped by Rs 1,071 or 0.86% to Rs 1,25,405 per 10 grams.
Expert Analysis
Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said, ‘Gold traded highly volatile as Comex gold fell 1% to $4,035, down by $41, while MCX gold rose due to a sharp rupee depreciation of nearly 1% from 88.70 to 89.60. The weak rupee offset global pressure, keeping domestic prices resilient. Stronger-than-expected U.S. Nonfarm Payroll data weakened expectations of a December rate cut by the Federal Reserve, weighing on global sentiment. Gold is expected to remain volatile within a range of Rs 1,20,000–1,24,000 per 10g.’
Investment Strategies
Indian investors looking to invest in gold or other precious metals should consider the current market trends and investment strategies to maximize their returns. With the Indian stock market growing at a rapid pace, investors should diversify their portfolios to minimize risks and maximize returns.