The recent surge in gold prices, reaching a three-week high, is attributed to continuous investments pouring into the precious metal. This trend stems from the market's anticipation of the US Federal Reserve refraining from hiking interest rates. Consequently, both the dollar and US bond yields have remained subdued.
As of Wednesday, the international market recorded a gold price of $2,000.38 per ounce, while US gold futures remained steady at $2,002.40.
The macroeconomic landscape appears to favor gold due to the moderation of inflation in the US, hinting at a potential conclusion to the cycle of interest rate hikes in the country.
ANZ analysts noted that the decline in US yields and the weakening US dollar are bolstering the attractiveness of gold as an investment option.
Lower interest rates diminish the opportunity cost associated with holding gold, while a weaker dollar translates to gold being relatively less expensive in Indian rupees.
In various major cities across India, gold prices on November 22 reflected this surge:
- Mumbai: Per 10 grams at Rs 62,020 (+380.00).
- Bangalore: Per 10 grams at Rs 62,020 (+380.00).
- Chennai: Per 10 grams at Rs 62,510 (+280.00).
- Delhi: Per 10 grams at Rs 62,170 (+380.00).
- Kolkata: Per 10 grams at Rs 62,020 (+380.00).
(With Agency Inputs)
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