Image Source : UNSPLASH Traders are closely monitoring U.S. inflation data, while the price of gold remains stable.
On the Multi Commodity Exchange (MCX), gold futures opened at Rs. 56,875.00 per 10 grams, a decrease of 0.15% from the previous day’s opening price of Rs. 57,005.00. Silver futures, on the other hand, opened at Rs.68,331.00 per kilogram, an decrease of 0.5% from the previous day’s opening price.
In international trade, Gold prices remained steady on Friday as traders weigh the potential impact of strong U.S. economic data on interest rates and the Federal Reserve’s policy decisions. Despite a slight decline in the previous session, spot gold was down by 0.18% to $1,925.45 per ounce, while U.S. gold futures remained unchanged at $1,930.20, as investors exercise caution ahead of upcoming inflation data and the Federal Reserve’s policy meeting next week.
The release of positive U.S. GDP numbers has led to speculation that the Federal Reserve may need to keep interest rates higher for longer, which could negatively impact gold prices, according to Michael Hewson, the chief markets analyst at CMC Markets. Despite this, many economists predict a brief and mild recession in the latter half of the year, due to the strength of the labor market.
Spot silver fell 1.35% to $23.57 per ounce, platinum dropped 0.79% to $1,010.00 and Palladium shed 2.92% to $1,627.99 as of 3:42 pm GMT.
This week, physical gold dealers in India offered the largest discounts in 10 months to attract customers as the sharp increase in local gold prices dampened demand in the country, which is the world’s second-largest consumer of bullion. With local gold prices reaching an all-time high of 57,125 rupees ($700.02) per 10 grams, dealers were offering discounts of up to $42 an ounce over official domestic prices, which includes 15% import and 3% sales levies, compared to a discount of $24 last week.
According to Prithviraj Kothari, managing director of RiddiSiddhi Bullions consumers are struggling to adapt to higher prices, and demand has been weak for the past few weeks, even during the wedding season. Dealers and jewelers have also been postponing purchases in anticipation of the government cutting import duties in the upcoming budget, said a Mumbai-based dealer with a private bullion importing bank.
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