Gold price today: Gold prices across India’s key spot markets opened higher today amid the local demand on the occasion of Dhanteras, analysts said.
The opening price for 999 purity gold was at Rs 47,904 per 10 grams, up Rs 150 from Monday’s closing price of Rs 47,754, while that of 995 purity gold was Rs 47,712, up Rs 149 from Rs 47,563 on Monday, the data available on India Bullion and Jewellers Association’s (IBJA) website showed.
Likewise, the price for gold of 916 purity was Rs 43,880, up Rs 137 from Rs 43,743 and that of 750 purity gold was Rs 35,928, up Rs 112 from Rs 35,816. The 585 purity gold was marked at Rs 28,024, up Rs 88 from Rs 27,936, the data showed.
However, on the futures side, gold futures contract on the Multi Commodity Exchange of India (MCX) were trading marginally lower on Tuesday, in line with the global prices which eased following an uptick in the dollar as investors await a policy meeting of the US Federal Reserve for clues to how it will fight growing inflationary pressures and worries over weaker economic growth.
At 12:31 pm, the gold contract for December delivery was trading at Rs 47,832.00 per 10 grams, down Rs 71.00 or 0.15 per cent from Monday’s close of Rs 47,903.00. The volumes stood at 991 lots while the open interest (OI) was at 8,939 lots, data from MCX showed.
According to data by Reuters, the spot gold dipped 0.1 per cent to $1,791.23 per ounce by 0406 GMT, while the US gold futures slipped 0.2 per cent to $1,791.80.
Speaking on the gold market, Ravi Singh, VP and Head of Research at Share India Securities told indianexpress.com, “Gold prices have decreased by over 5.5 per cent from last year’s Dhanteras. It’s currently hovering around Rs 48,000-mark while last year it was around Rs 51,000. The dip in prices is likely to generate interest amongst buyers and demand is expected to remain robust for the next two months.”
Keeping a two-month view, Singh advised buying gold at Rs 47,850 per 10 gram with a target price of Rs 48,500.
Jewellery demand in India in the July-September period increased approximately 60 per cent both on quarter-on-quarter and on year-on-year basis, due to strong pent-up demand, a rebound in economic activity and lower gold prices, World Gold Council noted in its recently published Gold Demand Trends Q3 2021 report.
Ajay Kedia, Director at Kedia Commodity Comtrade, said that demand has been picking up in the physical market due to festivals and upcoming marriage season however globally gold prices will get a clear direction post the outcome of the Fed meet.
“We have to see what is the tone of the US Fed, whether they are hawkish or slightly dovish,” he told indianexpress.com.
Kedia remains positive on gold for the next couple of months till December and advises investors to buy on dip with a range of Rs 46,000 on the lower side and Rs 50,000 on the higher side.