Gold Prices Plunge: India Now a Gold Haven Gold prices saw a nearly 1% increase today in the domestic futures market, driven by positive global trends and strong spot market buying, despite the strength of the US dollar and ongoing concerns over the Federal Reserve’s interest rate decisions. By midday, MCX Gold for the December contract had risen by 0.71%, reaching ₹74,470 per 10 grams.

International spot gold also saw a 0.4% rise, reaching $2,571.11 per ounce after a significant drop the previous week. Despite this recovery, gold experienced its largest weekly decline in over three years, reflecting investor concerns over US economic data, including strong retail sales and inflation figures, which have reduced expectations for a quick rate cut by the Fed.

Analysts remain cautious in the short term due to the firm US dollar and rising bond yields, which have exerted downward pressure on gold. However, geopolitical tensions, particularly regarding the Russia-Ukraine conflict, continue to support gold’s long-term outlook.

Commodity research analysts like Manav Modi highlight geopolitical developments, such as the US allowing Ukraine to use American-made weapons in the conflict, as a factor contributing to the rise in gold prices. Meanwhile, US economic data, including better-than-expected retail sales and inflation, raises questions about the pace of future rate cuts by the Fed.

For trading strategy, Rahul Kalantri recommends support for gold at $2,568-$2,545 and resistance at $2,610-$2,625, with similar levels in INR. On the other hand, Manoj Kumar Jain advises against trading in gold and silver for now, citing the strength of the dollar and waiting for market stability before taking new positions.

 

Gold Prices Plunge: India Now a Gold Haven Gold prices in India have dropped significantly, making it now cheaper than in major gold-buying countries like the UAE, Qatar, Oman, and Singapore. As of November 16, the price of 24K gold in India stood at ₹75,650 per 10 grams, down by ₹110 from the previous day. The 22K variant fell to ₹69,350 per 10 grams, and 18K gold was priced at ₹56,740, showing a steady decline.

This drop contrasts with rising prices in countries like Oman and Qatar, where 24K gold reached ₹75,763 and ₹76,293 per 10 grams, respectively. The price difference is attributed to escalating geopolitical tensions in the Middle East, particularly around the Israel-Gaza conflict, which has driven demand for gold as a safe-haven asset.

Globally, gold prices have faced a sharp decline following a record high in October, down 7% since then. The spot price for gold fell by 4.5% in the U.S., nearing a two-month low of approximately $2,563.25 per ounce. Analysts suggest that strong U.S. economic data and the Federal Reserve’s cautious stance on interest rate cuts have contributed to the bearish trend, along with the pressure of high U.S. Treasury yields and a strong dollar, which have made gold more expensive for international buyers.

Despite the recent downturn, gold is still up more than 24% year-to-date, supported by central bank purchases and ongoing geopolitical instability. In India, traders are closely watching the U.S. Federal Reserve’s meeting in December for clues on the future direction of gold prices, as changes in global economic policies continue to influence market trends.