Gold prices have witnessed a significant drop, touching their lowest point this month. The precious metal, which fell by Rs 350 to Rs 59,650 per 10 grams in the national capital on Wednesday, continued its downward trend on Thursday. Investors and experts are pondering the reasons behind this sudden decline in gold prices.
One of the primary factors contributing to the recent dip in gold prices is the acceleration of retail inflation in the United States. While the inflation rate was lower than anticipated, it has raised the possibility of another interest rate hike by the Federal Reserve. This has left the financial community speculating whether the Fed will implement this rate hike in its upcoming monetary policy meeting.
In India, the physical price of gold in major cities like Delhi and Ahmedabad currently hovers around Rs 59,700 per 10 grams. Additionally, the price of silver stands at approximately Rs 72,500 per kilogram, according to a report by ET (Economic Times).
Navneet Damani, Senior Vice-President of commodity research at Motilal Oswal Financial Services, commented on the decline in gold prices. He noted that gold has reached a more than two-week low due to increasing yields and investor positioning in anticipation of the US inflation data. This data is expected to provide insights into whether the Federal Reserve will proceed with interest rate hikes later this year.
As of the latest updates:
On the international front:
In the previous day's trading:
The downward trend in gold prices raises questions about the future trajectory of this precious metal and its implications for investors and the broader economy.
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