Gold prices in the national capital fell by ₹110 to ₹59,240 per 10 grams on Friday, influenced by weak global cues, according to HDFC Securities. In the previous trade, gold had ended at ₹59,350 per 10 grams. Additionally, silver plunged by ₹600 to ₹71,500 per kilogram.
Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, stated that gold edged lower on Friday, with spot gold prices trading at ₹59,240/10 gram in Delhi, marking a decline of ₹110 per 10 grams. The correction in gold prices is believed to be a result of stronger-than-anticipated U.S. macro data, which reinforced expectations of tightening monetary policy by the Federal Reserve.
However, Jateen Trivedi, VP Research Analyst at LKP Securities, remains optimistic and sees the current gold rate as an opportunity for investors. Trivedi expects the price of gold to rebound by Diwali, with projected levels of ₹61,850-₹62,500, which is close to the all-time high. In a bullish scenario, if the Fed’s stance shifts to a dovish outlook with hints of an interest rate cycle reversal, gold prices could potentially reach levels of ₹64,500.
Trivedi advises monitoring the actions and stance of the Federal Reserve, as well as keeping an eye on inflation data and its impact on interest rate decisions. In the overseas market, both gold and silver were trading lower at $1,915 per ounce and $22.70 per ounce, respectively.
While gold prices are experiencing a decline, experts see potential for the yellow metal to regain its value by Diwali. Investors and retailers are presented with an opportunity to take advantage of the current price levels. However, it is crucial to stay informed about the Fed’s actions and any shifts in their stance, as well as keeping track of inflation data and its influence on interest rate decisions.
It remains to be seen how gold prices will evolve in the coming months. Taking into account the various factors at play, investors must carefully monitor market trends and make informed decisions based on their analysis. As always, investing in any asset carries risks, so it is advisable to seek the advice of financial professionals when considering investment opportunities.
Disclaimer: The views and opinions expressed in this article are solely those of the authors and do not constitute financial advice. Investing in precious metals carries risks, and individuals should conduct thorough research and seek professional guidance before making any investment decisions.
