On Monday, gold prices in India experienced a decline, as reported by data from India’s Multi Commodity Exchange (MCX). The current price for gold stands at 72,209 Indian Rupees (INR) per 10 grams, reflecting a decrease of INR 509 compared to Friday’s rate of INR 72,718.
In terms of futures contracts, the price of gold dropped to INR 72,046 per 10 grams from its previous level of INR 72,727 per 10 grams.
Additionally, silver futures contracts also saw a decrease in prices, declining to INR 84,480 per kilogram from INR 84,791 per kilogram.
| Major Indian City | Gold Price |
|---|---|
| Ahmedabad | 74,805 |
| Mumbai | 74,500 |
| New Delhi | 74,520 |
| Chennai | 74,790 |
| Kolkata | 74,660 |
Global Market Movers: Comex Gold Price Falls After Release of Michigan Sentiment Survey Data
Following the release of the University of Michigan Consumer Sentiment Survey on Friday, the gold price has taken a downward turn. The survey revealed an unexpected decline in sentiment alongside heightened inflation expectations.
The preliminary University of Michigan Consumer Sentiment index for May dropped to 67.4 from 77.2, contrary to economists’ forecasts of a milder decrease to 76.0. Simultaneously, the long-term inflation expectations component increased to 3.1% from its previous level of 3.0%.
Elevated inflation expectations suggest a potential delay by the Federal Reserve (Fed) in its anticipated interest rate cuts. Such a scenario is detrimental to gold, as higher interest rates amplify the opportunity cost of holding gold in comparison to interest-bearing assets such as bonds or cash.
