Gold Price Slips Below $1800 As Global Commodities Take A Knock: Check India Rates

Gold prices all of a sudden have cracked immensely and fallen below the critical psychological level of $1800 per ounce in the international market. As we write at around 19:26 NY time or 4:59 am IST, spot gold quotes at $1768.9, still uplifted by a tad.

Gold Price Slips Below $1800 As Global Commodities Take A Knock: Check India Rates

Why such drawdown in gold prices suddenly?

As is the case, gold price which react inversely to dollar index has for now been impacted because of its strengthening to 2-decade high levels. Meanwhile, investors focus on the jobs data as well as the Fed's meeting took the sheen off the metal.

In a day, the spot gold international saw a crack by a hefty $35 per ounce.

August gold futures meanwhile traded at $1767 as of writing this copy, still somewhat firm after the previous day's jolt.

"The firm U.S. dollar has caused the gold price to nose-dive further, with the result that it dropped noticeably below the $1,800 per troy ounce mark," Commerzbank analyst Carsten Fritsch is quoted as saying in the Kitco report.

Noticeably, the US dollar zoomed to 106.66 on the back of rising economic uncertainty and recessionary fears. Also, there is a boost to the demand for the safe haven currency as risk-on sentiment is slowing off amid economic downturn.

Gold MCX rates

Aligning with the international rates, gold prices in India on the MCX slipped to the day's low of Rs. 51,250 per 10 gm, while settled with a gap down of 1.5% or Rs. 782 per 10 gm at Rs. 51,340 per 10 gm. Similarly, silver prices lost aggressively by a huge 2.8% or Rs. 1650 to Rs. 56,838 per kg,

Outlook for gold going ahead

The likelihoods of recession and the continuing inflationary threat will continue offer support to gold prices in the near to mid term. Also, the Kitco report which specified the WGC reports which stated that gold shall sustain in its run up as there has been seen a step up in gold purchase by central banks in May-June. As per the Kitco report,Central banks added 35 metric tons to the global gold reserves in May after buying 19.4 tons in April.

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