Gold Rates In Bangalore, Prices Slip By Rs.9,800 For 24K/100 Grams, Latest Prices Here

The gold rates in Bangalore have seen a downward trend during this week after reaching record high. The price of yellow metal saw a huge dip after the labor market data showed a positive trend. Globally, gold is not reacting well to this as the investors are engaging in stock selling or profit booking especially after the Fed released the meeting minutes. The minutes hinted at lack of confidence among the policy makers for the near future rate cuts by the Fed.

Gold prices in Bangalore: 24K gold slipped by Rs.9,800 for 100 grams reaching Rs.7,24,400 from Rs.7,34,200 on previous day. 10 grams went down by Rs.980, reaching Rs.72,440 compared to Rs.73,420 yesterday. While 8 grams declined by Rs.784 reaching Rs.57,952 in contrast to RS.58,736 yesterday. Lastly, 1 gram gold decreased by Rs.98 to 7,244 from Rs.7,342 the previous day.

The 22K gold declined at the same rate. 100 grams went down by Rs.9,000 thus reaching Rs.6,64,000 against Rs.6,73,000. Similarly, 10 grams decreased by Rs.900 touching the mark of Rs.66,400 in contrast to Rs.67,300 the previous day. The 8 grams of gold shocked by Rs.720 reaching Rs.53,120 compared to previous day's closing of Rs. 53,840. Lastly, 1 gram of gold declined by Rs.90 to Rs.6,640 against Rs.6,730 the last day.

In the case of 18K, 100 grams got crumpled by Rs.7,400 reaching Rs.5,43,300 compared to Rs.5,50,700 the previous day. Whereas, 10 grams of gold declined by Rs.740 reaching Rs.54,330 in contrast to Rs.55,070 the previous day. 8 grams of gold went down by Rs.592 reaching Rs.43,464 against Rs.44,056 the previous day. Lastly, 1 gram of gold declined by Rs.74 reaching Rs. 5,433 against Rs.5,507 in the previous day's closing.

Recently, spot gold had hit a record high of $2,449.9 over the positive anticipation on Federal's Reserve monetary policy. The business or economic activity in the US has accelerated to the highest level in over two years in May. Labor plays a crucial role in shaping the Federal Reserve's monetary policy. Market experts emphasize that a tight labor market tends to push wage inflation upwards and thus contributing to a general increase in consumer prices.

The Federal Reserve is exhibiting renewed apprehension regarding the persisting threat of inflation. According to the minutes from Wednesday's meeting, members of the Federal Open Market Committee (FOMC) emphasized that they are taking more time than expected to gain assurance on the fact that inflation is steadily progressing towards the target of 2%. The probability of rate cuts in the second half of the year has decreased to approximately 61 to 72% respectively.

Along with the US economic reports, the UK inflation rate came in higher than expected at 2.3% on an annual basis which again decreased the possibility of rate cuts by the Bank of England. Furthermore, according to the Reuters report, it is anticipated that the gold imports for India are projected to decline by nearly 20% in 2024 compared to the previous year. This reduction in imports by India, the world's second-largest consumer of gold, might serve as a restraining factor on a rally that drove global prices to a record high earlier this week.

Apart from these macroeconomic factors, the gold rates in Bangalore are also getting affected by the geopolitical tensions in the middle east. Investing in gold or any other asset is always affected by dynamic economic, international and social factors. One must analyze all the important indicators before making an investment.