Gold price see some softness, decline 0.29% on the MCX

The precious metals such as Gold and Silver remain in spotlight looking at the ongoing festive season of Diwali. Some softness in gold prices thereby is likely to bring backs some delight to buyers. The Gold prices in the domestic markets have been softening is past few days.

On the commodity exchange MCX the gold prices were down 0.26% or ₹155 to ₹59,854. As per Bloomberg too Gold spot prices at ₹162,247.31 per ounce were down 0.81 or by ₹1321.75.

Thursday already had seen weak opening for Gold in the retail markets and the 24 carat gold price at Rs.6135.0 per gram was down by Rs.150.0. The cost of 22 carat gold at Rs.5625.0 per gm was also down by a similar amount of Rs.150.0.

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The price change in 24 carat gold in the last one week has been 0.29%, whereas in the last month it has been -4.76%.

The concerns pertaining to spread of Israel Hamas conflict to other regions has seen slight easing as is also indicated in declining crude prices. Also the dollar Index remains strong at more than 105. Stronger Dollar is not favorable for Gold prices that are falling.

For investors it could be an opportunity to accumulate at lower levels as gold acts as a perfect hedge against inflation, especially, when the market is reeling under inflation or a stronger dollar say analysts.

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Motilal Oswal Financial Services Ltd said that “There certainly are some headwinds for the metal like, expectations of soft landing, further rate hikes, ease off in geo-political tensions and higher real rates. However, risk premium is being priced in gold, from pandemic, to Russia-Ukraine war and the latest Israel-Hamas dispute. An ease off in the Middle East dispute and/or continuation of hawkish stance from Fed could weigh on gold prices. However, the above factors could have a hangover for longer than expected and keep the party going for gold bulls helping it guide towards medium target of Rs. 63,000, said analysts at Motilal Oswal Finacial Services Ltd.lso 

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Updated: 09 Nov 2023, 06:27 PM IST