https://images.app.goo.gl/SKe47WwKDV7CyGBr9
On Friday, the national capital’s gold prices decreased 370 to 59,180 per 10 grammes due to negative trends in international markets. The yellow gold had previously traded at a closing price of 59,550 per 10 grames. In addition, silver prices fell by 550 to 70,950 per kilogram.
According to Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, “gold edged lower on Friday, with spot gold prices in the Delhi markets trading at 59,180/10 gramme down by 370 per 10 gramme.” After the Bank of England surprised the market with a surprise 50 basis point rate hike, which was larger than expected as the central bank tries to contain the highest inflation, gold prices continued to fall and hit new three-month lows in today’s session, according to Gandhi.
With the dollar strengthening after US Federal Reserve Chief Jerome Powell maintained that additional interest rate hikes were on the horizon, gold prices were on track to have their worst week since early February on Friday in the international markets.
Despite rising by 0.3% to $1,919.06 per ounce, spot gold continued to trade within striking distance of a session low that was reached earlier that day. The week-over-week decrease in prices is 1.9%. As of $1,929.20, US gold futures were up 0.3%. Holders of other currencies will now pay more for bullion as the dollar is up 0.6% and on track to post its first weekly gain in four.
Gold prices were within a small range of 58100 and 58250 for the majority of the first half. According to Jateen Trivedi, VP Research Analyst at LKP Securities, this followed the development of a major selling pressure that drove prices to fall from levels near 59250 in the MCX and $1960 in the Comex.
The Federal Reserve’s aggressive comments about its monetary policy and potential interest rate increases had an effect on gold prices. Given the ongoingly high inflation levels, which were a source of concern for the central bank, the market read the Fed’s attitude as a signal that additional rate hikes were inevitable, he added.
“As a result, the market began to price in the possibility of future rate increases by the Fed, which led to a further decrease in gold prices. Up until encouraging economic indicators appear, which would cause the Fed’s committee to postpone or rethink its plans to raise interest rates, this downward trend in gold prices is anticipated to continue.
