Gold prices in India corrected slightly early Tuesday in line with the prices of the bullion in the global markets. The precious metal retreated as the latest remarks from the US Federal Reserve officials raised hopes for a rate cut in December.
The UD Fed Governor Christopher Waller said that a rate cut is due in December because of a softer labour market. The US Fed New York President John Willian said that he also sees room for a near-term rate cut.
Their remarks indicating a possibility of a rate cut has impacted market sentiments because the US Government shutdown delayed release of key data, which usually provides cues for the US central bank's policy outlook.
A decrease in interest rates fuels risk-on sentiment, which influences investors to pull out money from safe-haven assets like the bullion.
With volatility already high, the market now looks to the upcoming U.S. economic data releases after the government Economic data release, Jateen Trivedi, vice president, research analyst at Commodity and Currency, LKP Securities. However, hopes of a Fed rate cut in December are limiting the downside for bullion.
Trivedi expects that the Gold prices will remain volatile within a range of $4,025–$4,085 on Comex and Rs 1,21,500–Rs 1,25,000 on MCX.
Gold Price Today: Delhi, Mumbai, Chennai Prices
Price of the precious metal declined 0.21% to Rs 1,24,240 per 10 gram in Mumbai. In New Delhi, it declined 0.3% to Rs 1,24,020 as of 6:25 a.m.
In Kolkata, Gold prices declined 0.3% to 1,24,070 as of 6:25 a.m. In Bengaluru the prices for the bullion was at 1,24,340. Gold prices in Chennai was at 1,24,600.
As of 6:32 a.m., Dec 5 future of the bullion on the Multi Commodity Exchange was at Rs 1,23,860.
In the international market, the Bloomberg Spot Gold was trading 0.16% down at $4,129.58 an ounce.
Silver Prices Today
Meanwhile, Silver prices advanced 0.3% to Rs 1,55,240 a kilogram, according to data on India Bullion Association.
The Silver Dec 5 future was 0.01% higher at Rs 1,54,490 per kilogram on Multi Commodity Exchange.
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