Gold prices rose in India on Thursday, according to data from India’s Multi Commodity Exchange (MCX).
Gold price stood at 62,050 Indian Rupees (INR) per 10 grams, up INR 83 compared with the INR 61,967 it cost on Wednesday.
As for futures contracts, Gold prices increased to INR 62,178 per 10 gms from INR 61,996 per 10 gms.
Prices for Silver futures contracts decreased to INR 72,138 per kg from INR 71,969 per kg.
| Major Indian city | Gold Price |
|---|---|
| Ahmedabad | 64,210 |
| Mumbai | 64,015 |
| New Delhi | 64,170 |
| Chennai | 64,210 |
| Kolkata | 64,210 |
Global Market Movers: Comex Gold price awaits US CPI inflation data for a fresh direction
- The uncertainty over the Federal Reserve’s rate-cut path keeps the US Dollar bulls on the defensive and assists the Comex Gold price in gaining some positive traction amid some repositioning trade ahead of the US consumer inflation figures.
- The markets were quick to react to the Fed’s surprising dovish tilt at the December policy meeting and are now pricing in five interest rate cuts by the end of 2024, summing up to a cumulative of around 140 basis points (bps) of easing.
- The incoming US macro data underscored the fundamental resilience of the American economy, which, along with mixed signals from Fed officials, forced investors to scale back their expectations for more aggressive policy easing.
- New York Fed President John Williams said on Wednesday that the US central bank is in a ‘good place’ and has time to think about what’s next for rates, though would eventually need to get policy back to more neutral levels.
- US Treasury Secretary Janat Yellen spoke from Boston on Wednesday, saying that said more work is required to get inflation under control and pledging to use “all tools at our disposal” to bring costs down.
- The yield on the benchmark 10-year US government bond holds steady above the 4.0% threshold and should help limit deeper losses for the USD, capping any further gains for the non-yielding yellow metal ahead of the US data.
- The headline US CPI is expected to rise by 0.2% in December, lifting the yearly rate to 3.2% from 3.1%, while the core gauge (excluding food and energy prices) is anticipated to ease to 3.8% YoY from 4.0% in the previous month.
- Cooler-than-expected inflation data will give the Fed more reason to cut interest rates this year and turn out to be a negative trigger for the Greenback, which, in turn, should lead to a fresh leg up for the precious metal.
- Conversely, a stronger US CPI print should provide the US central bank headroom to keep interest rates higher for longer and boost the buck, forcing the XAU/USD to break through a multi-week low touched on Monday.
