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Gold prices dip in international market over Fed rate-hike fears; check rates here

Gold prices dip in international market over Fed rate-hike fears; check rates here

Gold prices in the international market dipped to a three-week low on Friday morning as the US dollar got stronger amid prospects that the US Federal Reserve may go for more rate hikes

ccording to experts, gold prices may remain unstable due to issues such as global growth worries, geopolitical issues, and inflation concerns. ccording to experts, gold prices may remain unstable due to issues such as global growth worries, geopolitical issues, and inflation concerns.

Gold prices in the international market dipped to a three-week low on Friday morning as the dollar got stronger amid prospects that the US Federal Reserve may go for more rate hikes. This has dented the yellow metal’s appeal in the market, analysts said.

According to a Reuters report, spot gold was down 0.2% at $1,754.44 per ounce. This is its lowest since July 29, when the yellow metal touched $1,752.77. Overall, the metal has fallen by 2.6% this week as per reports. US gold futures eased 0.2% to $1,767.70.

In the international market, gold prices highly depend on the US interest rates as the fluctuations affect the opportunity cost of holding non-yielding bullion in a volatile market, the Reuters report said.

Domestic prices 

In the domestic market on Thursday, the yellow metal in National Capital Region dipped by Rs 32 to Rs 52,224 per 10 grams. It was trading at Rs 52,256 on Wednesday. Silver also slipped by Rs 348 and was trading at Rs 57,298 per kg, compared to Rs 57,646 per kg on Wednesday.

The prices in Mumbai remained unchanged. The price for 10 grams of 22-carat and 24-carat gold was Rs 47,900 and Rs 52,250, respectively.

In Chennai, the price of 10 grams of 22-carat gold dipped to Rs 48,380 compared to Rs 48,490 on Wednesday. Similarly, the price of 10 grams of 24-carat gold stood at Rs 52,770, compared to Rs 52,900 in the previous session.

Gold price fluctuations 

According to experts, gold prices may remain unstable due to issues such as global growth worries, geopolitical issues, and inflation concerns. This has dented investor interest globally. The gold prices may further suffer as the US Fed is expected to bring in more rate hikes, due to which the US dollar may remain supported. This would create more pressure on gold prices.

Besides other prevailing economic and geopolitical issues, analysts feel the gold has been supported on the downside by renewed China-US tensions over Taiwan after Washington and the island country agreed to start trade talks under a new initiative.

(With agency inputs)