Gold prices in India on Friday, August 18, were flat amid lacklustre demand in the spot market. In Delhi, the gold price was unchanged at Rs 54,250 per 10 grams, which is the same as the previous close. Silver was, however, up by Rs 1,000 to Rs 73,500 per kg.
In Mumbai and Pune, 22-carat gold stood at Rs 54,100 and 24-carat gold was at Rs 59,020 per 10g. In Chennai, gold prices stood at Rs 54,550 and Rs 59,510 per 10 grams for 22-carat and 24-carat, respectively. In Kolkata, 22-carat and 24-carat gold prices were Rs 54,100 and Rs 59,020 per 10 grams.
In Bhopal, gold prices stood at Rs 54,100 and Rs 59,070 per 10 grams for 22-carat and 24-carats. In Patna, 22-carat and 24-carat gold prices were at Rs 54,150 and Rs 59,070. In Agra, gold prices were at Rs 54,250 and Rs 59,170 per 10 grams.
In Hyderabad, 22-carat gold prices were at Rs 54,100 and 24-carat gold was at Rs 59,020. In Thiruvananthapuram, 22-carat and 24-carat gold prices stood at Rs 54,100 and Rs 59,020 per 10 grams.
In the futures market, gold was marginally up at Rs 58,379 and silver was also slightly up at Rs 70,380 on the MCX.
In the international market, gold was slightly up at $1,892.30 an ounce and silver was also higher at Rs $22.87.
Prathamesh Mallya, deputy vice-president (research), non-agro commodities & currency, Angel One, said gold prices were subdued due to rising treasury yields, a strong dollar, and a hawkish stance on interest rates by the US Federal Reserve.
“The Fed’s recent meeting minutes revealed a focus on inflation control, though some noted economic risks from excessive rate hikes. With U.S. interest rates anticipated to remain elevated, 10-year Treasury yields surged, diminishing gold’s appeal as a non-yielding asset,” Mallya said.
He also said the dollar’s strength further impacted gold’s performance, maintaining near a two-month peak. These factors collectively dented investor sentiment towards gold, contributing to the decline in its value.
“We expect gold to trade lower towards 58,100 levels, a break of which could prompt the price to move lower to 58,010 levels,” Mallya added.
Ravindra Rao, vice-president and head (commodity research) at Kotak Securities, said, “COMEX gold prices are headed for its fourth consecutive week of declines as a robust US jobs report reinforced speculation that the Federal Reserve is not done with the rate hikes yet. Data released yesterday showed that applications for unemployment benefits in US eased to 2,39,000 and the figures signaled a historically strong labour market, bolstering Federal Reserve hawks who see the need for further tightening.”
He added that spot gold prices still remains below $1,900 per troy ounce as bond yields continue to rise globally, with the 10-year treasury yield approaching the highest level since 2007. Prospects of higher rates, elevated dollar index and hawkish US Fed stance might continue to act as short-term headwind for gold prices.
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