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Gold prices today surge yet again in domestic market, global prices dip over stronger dollar

Gold prices today surge yet again in domestic market, global prices dip over stronger dollar

Domestic gold prices on September 7 surged even though most of the commodities in the non-agro segment saw a decline in the past few weeks. In the international market, gold prices dipped on Wednesday as the US dollar got stronger and Treasury yields rose.

Gold price today: Spot gold was down 0.3 per cent at $1,696.30 per ounce, as of 0127 GMT. Spot silver fell 0.7% to $17.92 per ounce, platinum was 0.7 per cent lower at $847.46 -16:9 Gold price today: Spot gold was down 0.3 per cent at $1,696.30 per ounce, as of 0127 GMT. Spot silver fell 0.7% to $17.92 per ounce, platinum was 0.7 per cent lower at $847.46 -16:9

Gold prices surged in the domestic market on Wednesday for the third time this week even as the BSE Sensex index fell over 400 points and the NSE opened deep in the red today. One gram of 22-carat gold will be available for Rs 4,690 as against Rs 4,675 on Tuesday, whereas one gram of 24-carat gold is available for Rs 5,116 as against Rs 5,110 yesterday.   

In the international market, gold prices dipped on Wednesday, as the US dollar and Treasury yields rose after economic data indicated that the US Federal Reserve might carry on with its aggressive rate-hike ways. 

Spot gold was down 0.3 per cent at $1,696.30 per ounce, as of 0127 GMT. Spot silver fell 0.7% to $17.92 per ounce, platinum was 0.7 per cent lower at $847.46 and palladium shed 1 per cent to $1,986.79. 

Gram Price for 22-carat gold Price for 24-carat gold
1 gram Rs 4,690 Rs 5,116
10 grams Rs 46,900 Rs 51,160

Domestic dynamics 

Domestic gold prices have shown a surge this week even though most of the commodities in the non-agro segment saw a decline in the past few weeks due to a stronger dollar and slowdown fears. MCX gold October futures climbed 0.25 per cent on Monday and touched Rs 50,495 per 10 grams. 

Also read: Gold prices today rise up marginally to Rs 51,000 per 10 grams, experts expect rates to remain volatile

The gold prices on September 7 in major cities are as follows: 

City 22-carat gold 24-carat gold
Chennai Rs 47,500 Rs 51,820
Mumbai Rs 46,900 Rs 51,160
Delhi Rs 47,050 Rs 51,320
Kolkata Rs 46,900 Rs 51,160
Hyderabad Rs 46,950 Rs 51,200
Bangalore Rs 46,900 Rs 51,160

International market 

In the past, gold prices have had an inverse relationship with volatility in the market, unlike other asset classes. Assets like bonds and stocks don’t like increased volatility in the market as that indicates greater uncertainty around cash flows and dividends. On the other hand, gold tends to benefit during periods of higher volatility.  

At present, gold volatility is rising, and in the context of higher yields and a stronger US Dollar, it remains a headwind for gold prices in the near future, as per experts. 

Spot gold was down 0.3 per cent at $1,696.30 per ounce, as of 0127 GMT. US gold futures were down 0.3 per cent at $1,708.30. The dollar index was up 0.2 per cent, which is very close to the two-decade peak, making gold more expensive for overseas buyers. 

(With agency inputs)