Gold prices in India have experienced a notable increase, according to data from the Multi Commodity Exchange (MCX). Understanding the current gold market dynamics is essential for investors and enthusiasts alike. In this blog, we’ll explore the latest gold prices, market influences, and significant economic indicators affecting the gold market.
Latest Gold Rates in India
On Wednesday, gold prices surged in India, reaching 72,445 Indian Rupees (INR) per 10 grams. This reflects an increase of 523 INR from the previous day’s price of 71,922 INR. In the futures market, gold prices also saw an uptick, climbing to 72,540 INR per 10 grams, up from 72,297 INR.
Silver futures contracts mirrored this trend, rising to 85,525 INR per kilogram, compared to the previous figure of 85,417 INR.
Gold Prices in Key Indian Cities
| City | Gold Price (INR/10g) |
|---|---|
| Ahmedabad | 74,950 |
| Mumbai | 74,735 |
| New Delhi | 74,735 |
| Chennai | 74,930 |
| Kolkata | 74,870 |
Global Market Influences on Gold Prices
Gold’s price performance is often affected by global market trends. Recently, the Comex gold price gained momentum due to heightened investment demand. In April, the US Producer Price Index (PPI) rose by 2.2% year-over-year, aligning with market expectations. The core PPI, excluding food and energy prices, increased by 2.4% YoY, indicating inflationary pressures.
Federal Reserve Chair Jerome Powell remarked that inflation is declining more slowly than expected. He suggested that the current PPI data supports the need for maintaining elevated interest rates for an extended period. Furthermore, Kansas City Fed President Jeffrey Schmid noted that inflation remains too high, indicating further actions might be necessary.
Economic Indicators Impacting India Gold Prices
Anticipated inflation figures suggest that annual headline Consumer Price Index (CPI) inflation might drop to 3.4% in April from an earlier estimate of 3.5%. Core CPI inflation is projected to decrease to 3.6% from 3.8%.
Moreover, US Retail Sales are expected to decline to 0.4% month-over-month in April. Financial markets reflect a 65% probability of a Federal Reserve rate cut in September 2024, based on the CME’s FedWatch Tool.
The World Gold Council reported a 3% rise in global gold demand during the first quarter of 2024, reaching 1,238 tonnes. This marks the strongest performance for the first quarter since 2016, highlighting increased investor interest.
Conclusion
In summary, today’s gold prices in India show a significant upward trend, influenced by both domestic and global economic factors. As gold remains a favored investment, staying informed about price movements and economic indicators is crucial. For more insights, check out our internal resources at Daily Gold Signal and stay updated with daily gold market trends at Daily Gold Update.
