Bangalore Gold Rate Today Slips Rs 930/10 gm Amid Navratri; Will China’s Gold Custodian Move Spark a Rally?

Bangalore Gold Rate Today: Adding to the festive cheer this Navratri, gold prices have witnessed a notable correction over the past two days. In Karnataka's capital, Bangalore (aka Bengaluru) and other Indian cities, the precious metal saw a significant drop on Thursday, September 25, bringing relief to jewellery buyers.

The decline in gold rates today has come amid shifting geopolitical scenario, trade tensions and concerns around H1B visa regulations by the US government. Meanwhile, China is also planning to become a custodian of foreign sovereign gold reserves that could have an impact in the international demand for the metal.

Back in India, metro cities like Bangalore, also called as Bengaluru, have seen a fall in gold jewellery buying because of skyrocketing gold prices.The recent price correction, combined with the ongoing Navratri festive spirit may revive gold jewellery buying to some extend.

Bangalore Gold Rate Today

The price of 24 karat gold in Bangalore declined by Rs 930 to Rs 1,14,440 per 10 gram on Thursday. Likewise, the price of 22 karat gold in Bangalore slipped by Rs 850 to Rs 1,04,900 per 10 gram. The price of 18 karat gold in Bangalroe fell by Rs 700 per 10 gram to Rs 85,830 per 10 gram.

The recent fall in gold rates today has come against the backdrop of profit booking by investors, volatility in the Indian currency, and mixed comments from US Fed Chair Jerome Powell. Investors will be keenly observing the US macroeconomic data set to be released on Thursday.

Since the beginning of the month of September, gold price rally has shifted to another gear as the prices have broken records multiple times. The remarkable gold price rally coincided with the US Fed's announcement to cut rates to curb inflation.

Bangalore Silver Rate today

The price of silver in Karnataka capital remained stagnant on Thursday. Bangalore silver rate today stood at Rs 142 per gram and at Rs 1,42,600 per kilogram. Despite some stability in silver rates over the past two to three days, the precious metal is also close to its all-time high mark. The silver price rally is the result of surge in industrial demand.

China's Plan To Become Custodian For Gold Reserves

The People's Bank of China is using the Shanghai Gold Exchange to court central banks of friendly nations to buy bullion and store it within the country borders, reported Bloomberg citing sources on Wednesday. China being one of the largest producer and consumer of gold is planning to take a bigger role in the global bullion market. If the country continues with the plan, it could have a short-term impact on the demand for gold in the international market.

"Geo-political unrest continue to support safe haven buying, NATO warned Russia that it would use "all necessary military and non-military tools" to defend itself as it condemned Moscow for violating Estonian airspace in "a pattern of increasingly irresponsible behaviour. The PBoC is leveraging the Shanghai Gold Exchange to encourage central banks from friendly nations to purchase and store bullion within its borders. On data front, US housing numbers were reported better than expectations, weighing on prices. Focus now shifts to U.S. economic data for further insights into Federal Reserve policy like, US GDP, Inflation and durable goods orders data," commented Manav Modi, Analyst - Precious Metal -Research, Motilal Oswal Financial Services Ltd. reviewing the factors that could potential impact the gold price rally in coming days.

Disclaimer: The views and recommendations expressed are solely those of the individual analysts or entities and do not reflect the views of Goodreturns.in or Greynium Information Technologies Private Limited (together referred as "we"). We do not guarantee, endorse or take responsibility for the accuracy, completeness or reliability of any content, nor do we provide any investment advice or solicit the purchase or sale of securities. All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions.