Gold Rate In India Today Nov-8: 22K/100 Grams Gold Shines By Rs 8,500; Silver Becomes Costlier

The US Federal Reserve's announcement last night of a 25 basis point rate cut drove the strong spike in gold prices in India today, Following sharp losses in the previous day due to Fed rate drop predictions and a reevaluation of the possibility of global tensions during the Trump administration, gold prices marginally recovered on Friday.

Gold Prices In India Today

Today, 22-carat gold costs Rs 7,285 per gramme in India, whereas 24-carat gold costs Rs 7,947 per gramme. The price of a 22k piece of 10 grams of gold climbed to Rs 72,850 on Friday from Rs 72,000 on Thursday, which is Rs 850 more expensive. In a similar vein, the price of 100 grams of 22k gold went up by Rs 8,500 today to Rs 7,28,500 from Rs 7,20,000 yesterday.

In India, the price of gold has gone up by Rs 910 from Rs 78,560 yesterday to Rs 79,470 today for 24k of 10 grams. The price of 100 grams of 24k gold in India shot up by Rs 9,100 in a single day, from Rs 7,85,600 on Thursday to Rs 7,94,700 today.

100 grammes of 18k gold are now priced at Rs 5,96,100 in India, up Rs 7,000 in a single day from Rs 5,89,100 yesterday, while 10 grammes of 18k gold are priced at Rs 59,610 today compared to Rs 58,910 yesterday, marking a 700 rupee rise in price.

Spot Gold Today

While spot gold dropped 0.4% to $2,697.19 per ounce as of 0251 GMT and was on track for a weekly loss, gold prices slipped on Friday but remained around the $2,700 mark as per Reuters. In the most recent session, however, prices climbed by nearly 1%, recovering from a low of more than three weeks. Following Trump's election victory, the U.S. dollar index was expected to rise a little each week, while U.S. gold futures remained unchanged at $2,704.50. Palladium dropped 0.21% to $1,022.36; platinum dropped 0.2% to $994.80; while spot silver dropped 0.8% to $31.75 an ounce, according to Reuters.

Silver Rates Today In India

In India, silver currently costs Rs 94,000 per kilogramme and Rs 94 per gramme. One kilogramme of silver costs Rs 94,000 on Friday, compared to Rs 93,000 on Thursday, which is a price increase of Rs 1,000. Ten grams of silver cost Rs 940 in India, up to Rs 930 yesterday.

Gold Price Rally To Continue As We Advance Into A Low-rate Era

As per Colin Shah, MD, Kama Jewelry, Gold prices in the international market rallied over 1% to trade over the $2710 level. The move is primarily due to the 25 bps rate cut announced by the US Fed last night. The rate cut led to a cooloff in DXY and subsequently a rally in gold. The yellow has recovered much of the fall witnessed earlier this week. Gold prices normally tend to rise in a low-interest regime.

"We are currently in a low-interest regime, post two straight cuts announced by the US Fed, and the RBI is expected to cut rates next month. Thereby fuelling the rally in gold further. As we are expected to be in a lower for longer interest rate regime, gold prices are expected to stay elevated. The geopolitical tensions are expected to support the yellow metal further. We reiterate our view on the gold price trajectory. In the long term, gold prices will touch $3000 globally, and Rs 86,000 in the domestic markets," Colin Shah further added.

Gold Price Outlook Today

"On the data front, weekly jobless claims were reported lower than expectations weighing on prices. The Federal Reserve cut its benchmark interest rate by a quarter point, second cut for this year, as its chair Jay Powell hailed the strength of the US economy and said he would not resign if incoming president Donald Trump asked him to. Focus now shifts to Michigan consumer sentiment and updates regarding China legislative congress meet. Gold on domestic front is expected to trade between the range of 76,800 -77,800," said the research analysts of Motilal Oswal in a note.

"Gold and silver prices are trading marginally lower today on the international bourses. We expect gold and silver prices to trade range-bound to slightly higher for the day; as gold prices held a gain at the end of a volatile week's trading, after the Federal Reserve reduced interest rates and investors assessed the implications of Donald Trump's White House victory," said the brokerage firm Nirmal Bang Securities Pvt. Ltd in a note.