Gold Price In India: Gold futures traded lower on Friday, September 24, as the yellow metal mirrored global trends after the US Federal Reserve policy statement projecting an early interest rate hike. On the Multi Commodity Exchange (MCX), gold futures due for an October 5 delivery, were last seen trading lower by Rs 134 - or 0.29 per cent - at Rs 45,922, compared to their previous close of Rs 46,056. Silver futures due for a December 3 delivery were last down 0.35 per cent at Rs 60,577 against a previous close of Rs 60.789.
Many of the U.S. Federal Reserve policymakers now expect to start raising interest rates next year, reflecting a growing consensus that a tighter policy will be required to keep inflation in check. The swift pace of interest rate hike compared to the central bank's projections in June comes as the US economy continues a rapid recovery after a brief recession period last year.
Domestic spot gold opened at ₹ 46,256 per 10 grams on Friday, and silver at ₹ 60,675 per kilogram - both rates excluding GST, according to Mumbai-based industry body India Bullion and Jewellers Association (IBJA).
Also, the Indian equity benchmarks today rose to new all-time highs with the BSE benchmark index - S&P BSE Sensex breaching the 60,000 mark for the first time and Nifty rising above its psychological level of 17,900 driven by gains in stocks such as ICICI Bank, HDFC Bank, Tata Consultancy Services. So far, Sensex hit a record high of 60,333 and Nifty 50 index has touched an all-time high of 17,947.65.
On Friday, the rupee slipped 13 paise to 73.77 against the US dollar in an early trade session tracking other Asian currencies and a stronger greenback in the global markets. If the rupee weakens against the dollar, gold prices may appreciate in rupee terms.
What analysts say:
Mr Amit Pabari, MD, CR Forex:
''Globally, the dollar index remain consolidated near 93.10 levels while the 10-year Treasury yield jumped almost 14 basis points to reach above 1.40 per cent, a day after the Fed indicated that it will likely begin tapering from November.
Investors shall also key an eye for Fed chair Powell speech due today for further momentum in dollar.
In the past session, the rupee traded on a stable to stronger note tracking positive equities and consistent inflows. However, the continued rising crude oil prices to a three year high due to supply disruptions could dent the sentiments. Going ahead, developments in the dollar over the debt ceiling and risk for Evergrande's potential fallout will drive the movement in the USDINR pair.''
Mr Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities:
''COMEX gold trades little changed near $1749/oz after a sharp 1.6 per cent decline yesterday. Weighing on gold price is firmness in equity markets, weaker investor interest and Fed's projection of early rate hikes. However, supporting price are global growth worries amid disappointing economic data and concerns about the Chinese economy.
Gold's sharp fall has dented market sentiment however a sustained decline is unlikely as economic data and rising raw material price reflect increasing challenges to the global economy.''