India Gold price today: Gold stays on the backfoot, according to MCX data

Gold prices fell in India on Tuesday, according to data from India’s Multi Commodity Exchange (MCX).

Gold price stood at 61,120 Indian Rupees (INR) per 10 grams, down INR 259 compared with the INR 61,379 it cost on Monday.

As for futures contracts, Gold prices increased to INR 61,262 per 10 gms from INR 61,117 per 10 gms.

Prices for Silver futures contracts decreased to INR 72,068 per kg from INR 71,864 per kg.

Major Indian cityGold Price
New Delhi63,150

Global Market Movers: Comex Gold price is underpinned by a softer US Dollar and geopolitical risks

  • A US defense official stated on Tuesday that Iran-backed Houthi rebels in Yemen fired a land-based cruise missile, which, in turn, is seen lending some support to the safe-haven Comex Gold price.
  • The upbeat US employment figures released on Friday made traders bet that it could take the Federal Reserve until May to begin a series of interest-rate cuts next year and act as a headwind.
  • A New York Fed survey on Monday showed that consumers anticipate inflation to be at 3.4% a year from now, down from 3.6% in October and marking the lowest reading since April 2021.
  • The incoming data raised hopes that inflation could continue to decelerate without the economy falling into a recession and forced investors to trim their bets for the first Fed rate cut move in March 2024.
  • Market participants, however, seem convinced that the US central bank is done with its policy-tightening campaign and may begin easing its monetary policy by the first half of the next year.
  • According to CME group’s FedWatch Tool, investors are still pricing in over a 40% chance of a March cut of at least 25 basis points (bps) and a nearly 75% chance of such a move in May 2024.
  • This, in turn, fails to assist the US Dollar to capitalize on the post-NFP positive move and lends support to the non-yielding metal, though bulls seem reluctant ahead of the US consumer inflation data.
  • The headline CPI is expected to rise by 0.1% in November and the yearly pace ticked down to 3.1%. The core gauge is anticipated to edge up from 0.2% to 0.3% MoM and hold steady at a 4.0% YoY rate.
  • The market attention will then shift to the outcome of the highly-anticipated two-day FOMC monetary policy meeting, scheduled to be announced during the US session on Wednesday.

Leave a Reply

Your email address will not be published. Required fields are marked *