Gold rate down by Rs 100 and Silver down by Rs 300 on June 19

Gold and silver prices dipped slightly on June 19, 2024 in major Indian cities, tracking a decline in global rates due to a stronger U.S. dollar and easing safe-haven demand.

On Wednesday, June 19, 2024, the price of gold and silver declined in the major cities of India because of the higher US dollar and less demand for safe-haven assets.

In the national capital Delhi, the fee of 10 grams of 24-carat gold decreased slightly by Rs. 24 to Rs. 73,495 as against the previous day from the rate of Rs. 73,663 according to the IBJA. Likewise, a kilogram of silver declined by Rs. 190 and was sold for Rs. 87,820 per kilogram as compared to Rs 88,100 per kilogram on June 18.

In other major metros, for p0 grams, 22-carat gold was available for Rs. 22 cheaper at Rs. 67,292 in Mumbai. The price cut was Rs.  449 and the 24-carat gold price was Rs.  72,711 per 10 grams in Chennai. The price is lowest in Chennai at Rs.  70,190 per 10 grams, while the highest price of the yellow metal is in Kolkata at Rs.  73,566 per 10 grams which is Rs.  450 less than the price for the previous trading session.

The pullback in the domestic prices was due to the pullback in the global rates as the dollar strengthened and made bullion costly to the owners of other currencies. Spot gold was down 0. % placing it at $1694/oz from $1695/oz the previous day—2% at $1,938. US gold futures traded at 69 per ounce by 0258 GMT.

”Presently, a higher dollar is putting pressure on gold prices as investors are expecting the US Federal Reserve later this week,” said Tapan Patel, senior analyst at HDFC Securities.

The monetary policy meeting is due this week and while most observers do not expect the Fed to raise interest rates, much attention shall be directed to inflation.

At the multi-commodity exchange (MCX), gold futures for the August contract slid 0. 07 % to trade at Rs.  51,688 for 10 grams. Silver futures for September declined 0. 20% at Rs.  60,948 per kg.

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The experts established that in the short-term there is no new fundamental driver to push precious metal prices up or down, they will remain trading in a range; in the future, the dollar and the changing policy of the Fed will remain important drivers of prices.