India ( Common Wealth ) _ According to HDFC Securities, gold prices decreased by Rs 110 to Rs 59,965 per 10 grams on Monday due to a decline in the price of the metal abroad.
In the last trade, the price of the precious metal for 10 grams was resolved at Rs 60,075. But silver prices increased by Rs 290 to Rs 73,040 per kilogram. “Spot gold prices traded at Rs 59,965 per 10 grams in the Delhi markets, down Rs 110 per 10 grams,” said Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities.
In the foreign markets, silver was up at USD 23.39 per ounce while gold was trading lower at USD 1,944 per ounce. “Despite a tentative agreement was reached over The US debt ceiling suspension over the weekend and concerns about future rate increases reduced demand for the non-yielding metal, according to Navneet Damani, Senior VP of Commodity Research at Motilal Oswal Financial Services.
Usually, the price of an asset class depends on supply and demand. For gold, this phenomenon is the same. However, a number of other crucial variables also have a significant impact on gold’s price.
In general, gold prices tend to rise when a central bank or government purchases more of it. There’s a chance that exports will bring down gold prices domestically.
The value of the US dollar and the price of gold are negatively related. Gold’s price decreases when the U.S. currency gains strength, and vice versa. In times of excessive inflation, the ability the ability to buy more things declines, the value of the US dollar suffers. The cost of gold rises when the value of the U.S. dollar falls.
The exchange rate of the US dollar to the Indian rupee is taken into account while calculating the price of gold in India. The price of gold is projected to decrease when the Indian rupee appreciates against the US dollar.
Due to the nation’s affinity for the yellow metal and the possible hedge against inflation it offers, gold is one of the most popular commodities among Indian investors. In addition to private investors, central governments around the world and exchange traded fund (ETF) firms also have a significant interest in gold.
