Gold prices gain on weaker dollar — check rates in your city today

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Gold prices were steady on Thursday (April 18), driven by a variety of factors both at home and abroad. According to data from India’s Multi Commodity Exchange (MCX), gold prices were trading around ₹73,030 per 10 grams, marking an increase of ₹45 compared to the previous day.

Futures contracts mirrored this trend, with prices edging upwards to ₹72,549 per 10 grams from the previous figure of ₹72,523.

Across major Indian cities, including Ahmedabad, Mumbai, New Delhi, Chennai, and Kolkata, gold prices hovered around the ₹74,000 per 10 grams mark.

(Source: CNBC Awaz)

Internationally, gold prices experienced a similar trajectory, with spot gold increasing by 0.8% to $2,379.33 per ounce at 10.01 am GMT.

This rise was attributed to a weaker US dollar and heightened investor concerns over geopolitical tensions, particularly in the Middle East.

“The weakening dollar has been supportive of precious metals across the board today. There are also other supportive factors like geopolitical risks and central bank diversification that have played a role,” Bank of China International (BOCI) analyst Xiao Fu was quoted as saying in a Reuters report.

Geopolitical tensions, including escalations between Israel and Iran, alongside the European Union’s decision to increase sanctions against Iran, contributed to market uncertainty.

Investors sought refuge in assets perceived as safer, including gold, amidst these geopolitical uncertainties.

However, analysts remain cautious about the sustainability of this upward trend.

The Federal Reserve’s cautious approach to rate cuts, as highlighted by Federal Reserve Chair Jerome Powell, and the potential for profit-taking could exert downward pressure on gold prices in the near future.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow