Gold Shines : Spotlight on Indian Gold price

According to data from India’s Multi Commodity Exchange (MCX), gold prices in India rose on Tuesday.

The price of gold stood at INR 63,308 per 10 grams, up INR 225 from Monday’s price of INR 63,083.

Gold futures contracts also increased to INR 63,528 per 10 gms from INR 63,320 per 10 gms.

However, prices for silver futures contracts decreased to INR 74,805 per kg from INR 74,390 per kg.

Global Market Trend Factors:

• In 2023, the price of Comex Gold rose by 13%, making it the best year since 2020. It appears to be continuing its established trend of appreciation.

• The yellow metal is being supported by hopes that the Federal Reserve will achieve a soft landing for the economy in 2024 and ease its policy as early as March.

• According to the CME’s FedWatch tool, there is more than an 85% chance that the Fed will deliver a rate cut in March and a cumulative rate cut of 150 basis points by the end of the year. 

• The safe-haven precious metal is receiving additional support due to geopolitical risks arising from the conflicts in Ukraine and the Middle East, as well as China’s economic struggles.

• In response to a series of strikes on military and commercial vessels in the region, US forces retaliated against the Iran-backed Houthi group in the Red Sea.

• The official Chinese PMI released over the weekend indicated a further decline in manufacturing activity with no signs of recovery at the end of 2023.