Gold, silver slip in early trade on profit booking; Yellow metal below Rs 1.24 lakh. Should you buy the dip?
Gold and silver prices declined in early trade on Friday, October 24, as investors engaged in profit booking after a strong global run-up and heightened volatility in recent sessions. On the Multi Commodity Exchange (MCX), gold futures for December delivery slipped by Rs 533 or 0.43% to trade at Rs 1,23,571 per 10 grams.
Silver futures were down Rs 1,386 or 0.93%, quoting at Rs 1,47,126 per kilogram. The movement came amid mixed global cues and cautious sentiment ahead of key economic indicators, with traders opting to pare gains at elevated levels.
Gold prices rose in the international markets on Friday, buoyed by lingering geopolitical tensions and ongoing uncertainty around U.S. monetary policy. The rally came ahead of the release of key U.S. inflation data later in the day, which investors are watching closely for cues on the Federal Reserve’s interest rate trajectory.
As per Reuters, spot gold climbed 0.3% to $4,138.52 per ounce at 0120 GMT. However, despite Friday’s gains, bullion was still on track for its worst weekly performance since May, down nearly 2.7% so far for the week. U.S. gold futures for December delivery were also up by 0.2% at $4,152.30 per ounce.
The price action followed heightened geopolitical risks, including sanctions imposed by the U.S. on Russian oil majors Lukoil and Rosneft over the war in Ukraine.
Additionally, market sentiment was affected by the announcement that U.S. President Donald Trump would meet Chinese President Xi Jinping next week in Asia amid worsening trade tensions between the two nations. The White House indicated the meeting comes in the backdrop of escalating retaliatory measures from both countries.The spotlight has now shifted to the U.S. Consumer Price Index (CPI) data, which is expected to show that core inflation held steady at 3.1% in September. The report has been delayed due to a temporary government shutdown, but investors have already priced in a potential 25-basis-point rate cut at the upcoming Federal Reserve meeting.Historically, gold tends to benefit from lower interest rates as they reduce the opportunity cost of holding non-yielding assets.
JP Morgan analysts, according to Reuters, in their latest commentary, maintained a bullish stance on gold, forecasting that prices could average $5,055 per ounce by the fourth quarter of 2026.
Today, the US Dollar Index, DXY, was hovering near the 99.04 mark, gaining 0.10%.
Gold rates in physical markets
Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 93,712/8 grams while pure gold (24 carat) prices stand at Rs 1,00,792/8 grams.
Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 92,616/8 grams while pure gold (24 carat) prices stand at Rs 99,576/8 grams.
Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 92,800/8 grams while pure gold (24 carat) prices stand at Rs 99,760/8 grams.
Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 93,088/8 grams while pure gold (24 carat) prices stand at Rs 1,00,088/8 grams.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)