Gold price today: Metal edges lower in Indian market after global rates slip to one-month low
Upstox
2 min read • Updated: May 4, 2024, 10:54 AM
Summary
Global gold prices dropped by 0.4% to $2,294.30 per ounce – its lowest in the last one-month period. The rates have eased after the US Federal Reserve sounded non-committal towards initiating the rate cut cycle this year.
Gold, a safe haven asset that has rallied in the backdrop of global headwinds, has been edging lower over the past couple of weeks. In the Indian market, the rates slipped during the early hours of May 4, a day after global prices softened to a one-month low.
The per 10 gram of 24 karat gold was trading at ₹7,172, according to Goodreturns. This marked a significant drop of ₹828 as compared to the price of ₹72,000 reported by news agency PTI on May 3.
Notably, global gold prices dropped by 0.4% on May 3 to $2,294.30 per ounce – its lowest in the last one-month period. The rates have eased after the US Federal Reserve, in its meeting this week, sounded non-committal towards initiating the rate cut cycle this year.
Also Read | Gold prices: Citi forecasts yellow metal to touch $3,000 an ounce in 6-18 months
The slide in global gold prices continued even as the US non-farm jobs data released on May 3 showed a weak growth in employment. Only 175,000 non-farm jobs were added in April, as compared to the estimate of 240,000 jobs. The unemployment rate increased to 3.4%.
A weaker employment scenario pushes the case for rate cuts, which in turn is expected to increase the demand for gold. However, the lacklustre US non-farm jobs data failed to raise the yellow metal’s rates.
Not only spot gold, but the US gold futures also shedded 0.3% to settle at $2,302.40.
What are the retail gold rates in Indian cities?
- As per the retail rates tracked by Upstox, the per 10 gram of 24 karat gold in Mumbai was trading flat at ₹72,757.
- In New Delhi, the retail prices declined by 0.6% to ₹73,256.
- In Chennai, the rate was flat at ₹73,113, whereas, it increased by 1% in Bengaluru to ₹73,398.
- In Kolkata, the price fell by 0.6% at ₹72,330.
Despite edging lower over the past couple of weeks, the gold rally is expected to continue in the period to come, say analysts. Citi Research, in a forecast released last month, said the global prices are likely to hit the $3,000-mark in the next six to 18 months. A section of experts, however, say that a ceasefire between Israel and Palestinian militant group Hamas could slow down the momentum.