Gold Prices In Bangalore: 24K Prices Fall By Rs 4,300 On May 14, Check Latest Gold Price

Gold prices in Bangalore dropped sharply amidst global market fluctuations. Gold rates in Bangalore were seeing a rally and saw good demand as well on both of the auspicious festivals of Akshaya Tritiya and Skanda Sashti. The major factor contributing to this dip is the anticipation of PPI and CPI data by the US. Apart from this the heavy ground fighting by the Israeli forces in Rafah to the south and Jabalia to the north of the Gaza Strip is also affecting the gold prices.

Gold prices in Bangalore: 24K gold slipped by Rs.4,300 for 100 grams reaching Rs.7,28,200 from Rs.7,32,500 on previous day. 10 grams went down by Rs.430, reaching Rs.72,820 compared to Rs.73,250 yesterday. While 8 grams declined by Rs.344 reaching Rs.58,256 in contrast to RS.58,600 yesterday. Lastly, 1 gram gold decreased by Rs.43 reaching 7,282 from Rs.7,325 the previous day.

The 22K gold declined at the same rate. 100 grams went down by Rs.4,000 thus reaching Rs.6,67,500 against Rs.6,71,500. Similarly, 10 grams decreased by Rs.400 touching the mark of Rs.66,750 in contrast to Rs.67,150 the previous day. The 8 grams of gold shocked by Rs.320 reaching Rs.53,400 compared to previous day's closing of Rs. 53,720. Lastly, 1 gram of gold declined by Rs.40 to Rs.6,675 against Rs.6,715 the last day.

In the case of 18K, 100 grams got crumpled by Rs. 3,200 reaching Rs.5,46,200 compared to Rs.5,49,400 the previous day. Whereas, 10 grams of gold declined by Rs.320 reaching Rs.54,620 in contrast to Rs.54,940 the previous day. 8 grams of gold went down by Rs.256 reaching Rs.43,696 against Rs.43,952 the previous day. Lastly, 1 gram of gold declined by Rs.32 reaching Rs. 5,462 against Rs.5,494 in the previous day's closing.

Last week gold prices saw an upsurge of 1% after the release of employment data by the US. The US is expected to disclose the producer price index (PPI) data today, and the consumer price index (CPI) on Wednesday.

These releases may provide insights into when the Fed might make adjustments in the rate cut. According to the CME FedWatch Tool, traders are currently estimating a 63% chance of a rate reduction in September. Lower interest rates decline the opportunity cost associated with non-yielding gold.

COMEX Gold prices plunged more than 1% at the start of the week, as investors weighed hawkish Fed comments and rise in inflation expectations. The Fed's Bank of Dallas President Lorie Logan said last week it's still too early to think about reducing interest rates, while Fed Governor Michelle Bowman said she doesn't expect it will be appropriate for the Fed to cut rates in 2024 said, Kaynat Chainwala - Senior Manager - Commodities Research, Kotak Securities.

He mentioned that now investor focus is on US PPI and CPI due today and tomorrow respectively for more cues on Fed policy trajectory.

Additionally, he stated that Fed chair Jerome Powell's speech later today can also be closely watched.

According to the government data released on monday, India's retail inflation saw a slight decline and reached an 11-month low of 4.83% on an annual basis in April against 4.85% in the previous month.

Decreased inflation somewhat indicates a potentially stable economic environment, which might reduce the perceived need of gold as a safe haven metal for investors to hedge against inflation, potentially leading to decreased demand and price. Additionally, subdued inflation also implies that central banks may maintain accommodative monetary policies, which tend to support gold prices due to lower opportunity costs of holding the non-interest-bearing asset.

Gold prices in Bangalore saw a dip due to multiple global and domestic factors. The price and demand for gold might continue to see such fluctuations as the war in the middle east continues. The retail inflation rate of India and the anticipated CPI and PPi data by the US are the key factors affecting the gold price in Bangalore.