Gold prices saw a modest climb in early trade on Saturday, June 8, 2024, with the cost of ten grams of 24-carat gold reaching Rs 73,760. This minor increase of Rs 10 reflects a continued interest in the precious metal, despite global economic pressures. Similarly, silver prices rose by Rs 100, bringing the price of one kilogram of silver to Rs 96,100. The 22-carat gold also saw a slight uptick of Rs 10, selling at Rs 67,610 for ten grams.
In major Indian cities, the prices varied slightly. In Mumbai, Kolkata, and Hyderabad, the price of ten grams of 24-carat gold was consistent at Rs 73,760. Delhi saw a slightly higher rate at Rs 73,910, while in Chennai, the price was at its peak at Rs 74,630. For 22-carat gold, the prices in Mumbai, Kolkata, and Hyderabad remained uniform at Rs 67,610. Delhi’s price was slightly higher at Rs 67,760, and Chennai again led with Rs 68,410.
Silver prices were uniform across Mumbai, Delhi, and Kolkata, each city pricing one kilogram of silver at Rs 96,100. However, Chennai saw a higher rate of Rs 1,00,600 per kilogram, reflecting regional market dynamics and possibly local demand and supply variations.
The modest rise in gold prices comes against a backdrop of fluctuating global market trends. On the previous Friday, gold prices experienced accelerated declines in the United States following a stronger-than-expected jobs report. This report diminished hopes for imminent interest rate cuts, influencing bearish sentiment among investors. The data revealed that China, a leading consumer of gold, had restrained its bullion purchases in May, further impacting global gold prices.
Spot gold dipped approximately 3 percent to $2,304.54 per ounce by the end of the trading day, while US gold futures settled 2.8 percent lower at $2,325. This marked a nearly 1 percent decline for the week, extending gold’s losing streak to three consecutive weeks. The downturn in gold prices also affected other precious metals. Silver saw a significant drop of 6.6 percent, falling to $29.25 per ounce. Platinum and palladium were not spared, with prices falling by 3.6 percent to $967.05 and 2.2 percent to $909.06.
Market analysts attribute the sell-off in gold and other metals to the robust performance of the US economy, which dampened expectations of a quick interest rate cut by the Federal Reserve. Phillip Streible, chief market strategist at Blue Line Futures, noted that the economic data suggested strength, leading to a broad liquidation across metal markets.
Despite these global fluctuations, the modest rise in domestic gold prices indicates a resilient market. Indian consumers continue to invest in gold, often seen as a safe-haven asset in times of economic uncertainty. The marginal increase in silver prices also suggests a steady demand for this metal, which is widely used in industrial applications and jewelry.
The precious metals market remains dynamic, influenced by a mix of global economic indicators and local market conditions. Investors will likely keep a close watch on upcoming economic data and central bank policies to gauge the future direction of gold and silver prices. For now, the modest increases in early trade on June 8, 2024, reflect a cautious optimism among market participants, balancing between the lure of gold as a secure investment and the pressures of a fluctuating global economy.
