Gold, the expensive metal still hovers at one-month low on Tuesday, November 12. There is caution by investors because they believe that they are going to receive the most sensitive U.S. economic data and the hints from the Federal Reserve officials. The latest Indian gold price remains flat. The price of gold for 24 carats stands at ₹7,893.3 per gram, while 22 carats gold price is at ₹7,237.3 per gram. Gold dropped 0.1% to $2,617.15 per ounce, whereas the U.S. experienced an increase of 0.2% to $2,623.30 per ounce.
Stronger U.S. dollar, which recently touched a four-month high, was one of the key factors that led to this recent drop in gold. As already mentioned, a strong dollar makes gold less attractive to overseas buyers during the previous phases of the current Indian gold price.
According to Renisha Chainani, Head of Research at Augmont: “Expected policies by president-elect Donald Trump such as tax cuts and spending boosts are supposed to ignite inflation and lift the dollar and add pressure on the lure of gold.”
How latest Indian gold price are affected by strength of USD against INR?
It would slow the Federal Reserve’s expected rate cuts next year, further affecting gold demand. Said Tim Waterer, chief market analyst at KCM Trade: “One would think that gold finds a way to go higher from this point, but it will actually depend on the strength of the dollar.” Domestic demand remains robust for the latest Indian gold price, Chainani said despite international market pressures.
With key data releases this week, such as the Consumer Price Index (CPI) due on November 13, the Producer Price Index (PPI) on November 14, and retail sales on November 15, investors and traders are focusing much more today on U.S. economic indicators. These reports and statements from officials of the Federal Reserve may indicate future interest paths, which may, most probably, affect both global and the latest Indian gold price trends.
Check out this video about Today’s Gold Price
The outlook for gold remains mixed as global and Indian prices adjust to US economic developments. Jateen Trivedi from LKP Securities believes gold may continue in its present trajectory though a breakout above $2,750 per ounce is likely to push the trade into a better trend.
Meanwhile, Rahul Kalantri of Mehta Equities said that the latest Indian gold price is supported at ₹75,020-₹74,750 per 10 grams with resistance near ₹75,810 per 10 grams. The Indian market has remained resilient despite the fluctuations in the international market.
Also, see: No more halal meals for Hindu and Sikh communities on Air India airlines