Gold prices in India held steady on August 23, pausing after a three-day rally that drove rates near record highs. The bullion market saw significant volatility earlier in the week, with multiple surges pushing the price of the precious metal higher. This week’s upward trend has put pressure on buyers, particularly those planning purchases for the upcoming wedding season.
The 24-carat gold price in India is currently above Rs. 1,63,000 per 10 grams in the domestic market. The 22-carat gold rate hovered near Rs. 1,49,500 per 10 grams. Bengaluru saw the 22-carat gold rate steady at Rs. 1,49,500 per 10 grams, while the 24-carat price settled at Rs. 1,62,090 per 10 grams. The 18-carat gold rate in the city retails at Rs. 1,22,320 per 10 grams.
Chennai reported similar figures, with the 22-carat gold rate at Rs. 1,49,500 per 10 grams and the 24-karat gold rate at Rs. 1,62,090 per 10 grams. The 18 karat rate in the city is available at Rs. 1,22,320 per 10 grams. Hyderabad also maintained the same price points, with the 22 karat gold rate at Rs. 1,49,500 per 10 gram and the 24 karat gold rate today at Rs. 1,62,090 per 10 gram.
For those looking at bulk purchases, the 100 grams of 22-carat gold stands at Rs. 14,95,000, while the 24-carat gold price per 100 grams is now retailing at Rs. 16,20,900. Silver prices in India on Sunday, August 23rd showed no major movements, with 1kg of silver in India costing Rs. 2,70,000. The 100g of silver rates in India cost Rs. 27,000 per 10 grams.
Gold futures on the Multi Commodity Exchange (MCX), expected to mature on October 5th, closed 0.73% higher at Rs. 1,54,590. Market analysts suggest that spot gold may find support near $4480 and rise towards the $4600 level on a soft dollar and safe haven buying. U.S. Treasury Secretary Scott Bessent said he may further increase the governments repurchases of Treasuries, which could support the price.
Traders are pricing in a 64% chance that the Fed will keep interest rates unchanged and a 36% chance of a rate hike in September. However, sharp upside may be limited as a surge in crude oil prices has raised inflation concerns. This could add pressure on the Fed to tighten monetary policy, potentially weighing on gold demand.
The steady prices offer a momentary pause for consumers, but the underlying market factors suggest the bullion market remains volatile. Buyers hoping to lock in lower rates may need to act quickly, as the trajectory of the dollar and inflation data will likely dictate the next move in prices. Market volatility often influences investor decisions across various asset classes.
