Gold, silver prices extend fall; Yellow metal below Rs 1.23 lakh per 10 gms. What should investors do?
Gold and silver prices declined in early trade on Monday, October 27, 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 1,142 or 0.92% to trade at Rs 1,22,309 per 10 grams.
Silver futures were down Rs 4,560 or 3%, quoting at Rs 1,42,910 per kilogram. The movement came ahead of the US Fed‘s policy meeting later this week, with traders opting to pare gains at elevated levels.
In the international market, Gold prices declined on Monday, as a stronger U.S. dollar and signs of easing U.S.-China trade tensions weighed on the safe-haven metal. Investors are also awaiting key central bank meetings later this week for monetary policy signals.
Spot gold fell 0.7% to $4,082.77 per ounce, while U.S. gold futures for December delivery dropped 1% to $4,095.80. The dollar strengthened to a more than two-week high against the yen, making gold costlier for holders of other currencies.
In other precious metals, spot silver slipped 0.3% to $48.42 per ounce, platinum inched up 0.1% to $1,607.24, and palladium eased 0.2% to $1,426.06.
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 influenced by news that U.S. President Donald Trump is set to meet Chinese President Xi Jinping next week in Asia, amid escalating trade tensions between the two countries. The White House noted that the meeting follows a series of retaliatory measures imposed by both sides in recent weeks.Attention has now turned to the upcoming US Fed meeting, where investors have largely priced in a 25-basis-point rate cut.
“Every dip in gold price gives buyers a chance to buy and enjoy it. Wedding buyers with upcoming wedding dates can consider utilizing the dip to buy,” says Suvankar Sen, MD & CEO, Senco Gold Ltd.
How should you trade gold?
“Gold prices remain under pressure as profit booking extended from overbought levels, with renewed optimism around US trade deals with India and potentially China prompting investors to trim positions. Prices have corrected over 3.40%, currently hovering near Rs 1,22,000, as traders await key US CPI data due later in the evening, which is likely to add to market volatility. The ongoing US government shutdown and uncertainty around trade negotiations are expected to keep sentiment cautious. In the near term, gold prices are likely to remain volatile within a range of Rs 1,18,000–Rs 1,25,500, with bias tilted slightly negative until clarity emerges on these macro developments,” Jateen Trivedi of LKP Securities, said.
Gold rates in physical markets
Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 92,232/8 grams while pure gold (24 carat) prices stand at Rs 1,00,608/8 grams.
Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 92,120/8 grams while pure gold (24 carat) prices stand at Rs 1,00,496/8 grams.
Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 92,000/8 grams while pure gold (24 carat) prices stand at Rs 1,00,360/8 grams.
Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 92,120/8 grams while pure gold (24 carat) prices stand at Rs 1,00,496/8 grams.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)