SRINAGAR: Gold prices in India fell on Wednesday, mirroring a decline in global markets as investors booked profits and the US dollar firmed ahead of the Federal Reserve’s policy decision later in the day.
According to Goodreturns data, as per The Indian Express, 24 karat gold in the domestic market was priced at Rs 11,171 per gram, while 22 karat gold stood at Rs 10,240 per gram. Prices for 18 karat gold were recorded at Rs 8,378 per gram.
In international trade, spot gold slipped 0.2 per cent to $3,681.23 per ounce as of 0256 GMT, after hitting a record high of $3,702.95 on Tuesday. US gold futures for December delivery also declined 0.2 per cent to $3,718.90 per ounce.
Analysts attributed the retreat to profit-taking at higher levels. “Gold’s ascent to $3,700 was aided by the decline in the US dollar and by bets that the Fed may signal further rate cuts before year-end,” said Tim Waterer, Chief Market Analyst at KCM Trade, as per Moneycontrol. He noted, however, that selling pressure around the $3,700 mark weighed on prices.
The dollar index edged up 0.1 per cent on Wednesday after hitting a two-month low in the previous session. US Treasury yields also remained near a five-month low, keeping market attention on the Fed’s stance. Lower interest rates generally make non-yielding bullion more attractive.
Rahul Kalantri, Vice President Commodities at Mehta Equities Ltd, said both gold and silver faced profit booking at elevated levels. “Strength in the rupee limited domestic gains despite supportive global factors. Gold has support at $3,651–$3,630 and resistance at $3,700–$3,720, while in INR terms, support is seen at Rs 1,09,540–Rs 1,09,240 and resistance at Rs 1,10,550–Rs 1,11,000,” he explained.
Investor sentiment also received a boost as SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, reported a 0.32 per cent increase in holdings to 979.95 metric tonnes on Tuesday.
Markets now await remarks from Fed Chair Jerome Powell for signals on the pace of monetary easing, which could determine the next direction for bullion.
