The prices of gold and silver opened lower on the Multi Commodity Exchange (MCX) on Monday, January 8, 2024, tracking weak global cues. This decline comes after a period of volatility, offering a slight respite for buyers looking to invest in precious metals.
Today's Precious Metals Market Snapshot
On the MCX, February gold futures were trading lower by Rs 120 or 0.20% at Rs 62,500 per 10 grams. Similarly, March silver futures saw a more pronounced dip, falling by Rs 490 or 0.67% to Rs 72,450 per kilogram. This movement sets the tone for domestic physical market rates across major Indian cities.
The price correction is largely influenced by the international market. On the COMEX, gold futures were trading marginally lower near $2,049 per ounce. Market analysts attribute this trend to a strengthening US dollar and rising US Treasury bond yields, which typically make non-yielding assets like gold less attractive to investors.
City-Wise Gold and Silver Rates for January 8
Following the trend on the futures exchange, physical gold and silver prices in key Indian markets also adjusted. It is crucial to note that prices vary from city to city due to factors like local taxes, transportation, and making charges.
Here is a look at the approximate prices for 24-carat and 22-carat gold per 10 grams, along with silver per kilogram, in some major cities:
- Delhi: 24-carat gold was priced around Rs 65,450, while 22-carat gold was near Rs 60,000. Silver was trading at approximately Rs 78,500 per kg.
- Mumbai: 24-carat gold hovered near Rs 65,100, with 22-carat gold at about Rs 59,700. Silver rates were close to Rs 78,300 per kg.
- Chennai: 24-carat gold was quoted around Rs 65,800, and 22-carat gold near Rs 60,300. Silver was priced at roughly Rs 78,800 per kg.
These rates are indicative and subject to change throughout the trading day based on real-time market dynamics. Consumers are advised to check with local jewellers for the exact price at the time of purchase.
Market Outlook and Influencing Factors
The short-term trajectory for gold and silver prices remains closely tied to global economic indicators. Traders and investors are keenly awaiting key US inflation data and comments from Federal Reserve officials for clues on the future path of interest rates.
Higher interest rates increase the opportunity cost of holding gold, which could exert downward pressure. However, geopolitical tensions and economic uncertainty often provide a supportive floor for gold prices, as it is considered a safe-haven asset. For silver, its dual role as a precious metal and an industrial commodity means its price is also sensitive to global industrial demand forecasts.
For Indian buyers, the rupee's performance against the US dollar is another critical factor. A weaker rupee makes dollar-denominated imports like gold more expensive, which can offset any decline in international prices.
In conclusion, while today's session shows a mild correction, the precious metals market is poised for continued sensitivity to macro-economic data and central bank policies. Potential investors should monitor these factors closely and consider their investment horizon before making decisions.
