Gold price in India today: US Fed decision weighs on yellow metal prices
Drop in global gold prices also weighed on Indian yellow metal, as both 24 karat and 22 karat gold saw massive tumble in their prices, compared to the gains made in previous trading session.
The US Federal Reserve's decision of increasing the benchmark lending rate by 25 basis points, turned out to be a bad key factor for trading in global gold prices on Thursday, as investors made profit booking. It also needs to be noted that, the global gold prices earlier hovered near 2-week high, but sentiments turned bleak on Fed's rate hike movement. However drop in global gold prices also weighed on Indian yellow metal, as both 24 karat and 22 karat gold saw massive tumble in their prices, compared to the gains made in previous trading session. It is being known that investors expected more hawkish comments on interest rate rises.
Gold in India has been a perfect hedge against inflation over the years, as investors are increasingly looking at it as an important source of investment.
24 karat gold today was trading at Rs 31,860, down by Rs 180, compared to its previous day performance when it stood at just Rs 32,040. While 100 gram in 24 karat plunged by Rs 1,800 and was available at Rs 3,18,600 compared to previous day price of Rs 3,20,400. Also, 1 gram and 8 gram in 24 karat witnessed tumbled by Rs 18 and Rs 144 respectively.
22 karat gold for 10 gram, however, was valued at Rs 29,740, lower by Rs 220, compared to its previous day price of Rs 29,960. A 100 gram in the same karat is priced at Rs 2,97,400, below Rs 2,200 against the previous day price of Rs 2,99,600. 1 gram and 8 gram in 22 karat slipped by Rs 22 and Rs 176 respectively during the day.
Meanwhile, silver prices remained unchanged compared to their previous day performance, with 1 KG of this metal standing at Rs 41,100, 100 gram at Rs 4,110, 10 gram at Rs 411, 8 gram at Rs 328.80 and 1 gram at Rs 41.10.
Moreover, Spot gold was down 0.1 percent to $1,329.91 per ounce at 0341 GMT. Prices climbed 1.6 percent in on Wednesday, its biggest one day percentage gain since May 17, 2017. U.S. gold futures for April delivery rose 0.67 percent to $1,330.20 per ounce.
Against a basket of currencies, the dollar index was down 0.3 percent at 89.548 after touching a two-week low of 89.481. The Fed`s decision led the U.S. dollar to its largest fall in two months, as per Reuters report.
Interestingly, Alasdair Macleod, head of research with Toronto-based Goldmoney Inc in the report said, "The FOMC statement was more dovish than we thought warranted ... At some stage, the Fed will have to grasp the nettle, but the danger is that in doing so, it will bring forward a credit crunch."
"These are good conditions for gold, because we can expect the dollar to weaken," Macleod added.