Gold and silver prices declined by up to 1% in early trading on the Multi Commodity Exchange (MCX) on Friday, August 14. At around 9:15 am, October-delivery gold was trading 0.69% lower at ₹1,52,406 per 10 grams, while September-delivery silver fell 0.85% to ₹2,33,455 per kg.
The decline came after recent gains in precious metals in domestic and international markets. Profit booking at higher levels also exerted pressure on prices.
US inflation and Federal Reserve monetary policy remain among the key indicators for the bullion market. If inflation remains elevated for an extended period, the central bank may adopt a cautious approach towards interest rate cuts. Higher interest rates can increase pressure on non-interest-bearing assets such as gold.
Following the US inflation data, investors booked some profits after the recent rise in precious metals. In the international market, gold prices also remained under pressure. US gold prices declined by around 1% after reaching a more than two-month high in the previous session.
Gold and silver prices in local markets can vary depending on the city, purity, taxes and local demand. The available prices on August 14 were ₹1,52,100 in New Delhi, ₹1,52,360 in Mumbai, ₹1,52,480 in Bengaluru, ₹1,52,160 in Kolkata, ₹1,52,600 in Hyderabad and ₹1,52,880 in Chennai.
The retail prices listed above are indicative. The final price of jewellery may differ after adding making charges, GST and other applicable charges.
24-carat gold is considered the highest-purity gold and contains approximately 99.9% pure gold. However, its higher purity makes it relatively soft. In 22-carat gold, other metals are mixed with gold, increasing its strength. As a result, 22-carat gold is widely used for making jewellery.
According to Jatin Trivedi, Commodity and Currency Research Analyst at LKP Securities, profit booking was seen in gold after its recent rise. COMEX gold also declined by around $25. According to him, US inflation data was around market expectations, prompting investors to book profits after some positive expectations had been factored into the recent rise.
In the coming days, the US dollar, crude oil prices and signals regarding Federal Reserve interest rates could remain key factors for gold prices. Technically, the ₹1.52 lakh to ₹1.52 lakh region is considered an important support zone for gold, while the ₹1.55 lakh to ₹1.56 lakh region is viewed as near-term resistance.
