Gold Price Slips On Profit Booking; Find Out What Influences Rates!
New Delhi: Gold price today in India (22 carat) fell to Rs 69,590 per 10 gram (gm) on Monday, September 23, 2024, as quoted by “Good Returns .” While, 24 carat gold price today was quoted at Rs 75,920 per 10 gm. As far as 18 carat gold is concerned, its prices traded at Rs 56,940 per 10 gm. Silver price today was also quoted to trade in negative territory and traded at Rs 92,900 per kg.
MCX Gold & Silver Rate
In futures trade too, silver and gold contracts faced selling pressure on Monday. Gold contracts for October delivery was marginally down 0.04% to Rs 74,014 per 10 gm on the Multi Commodity Exchange (MCX). And, silver contracts for December delivery was down 0.06% to Rs 90,080 per 1 kg.
How gold price is determined?
Gold price in India depends on various factors which are both domestic and international. Following are those factors:
1. Demand and Supply dynamics:
Like in case of any other thing, yellow metal pricess too are dependent how much demand and how much supply is there in the market. The price is determined at the equilibrium point.
2. Global Interest Rates
Interest rate revisions made by central banks of developed countries especially Federal Reserve of the US also influence the precious metal’s prices on daily basis. Recently, Fed cut the rates for the first time in last four years, since then, gold prices have continuously risen.
3. Change in value of US Dollar
As the US has the most gold reserves in the world, so demand made by traders from other countries for the precious metal from the US is also generally high. But for these traders the yellow metal will be available in dollar terms. So, they will have to make purchases in terms of the greenback. If Dollar’s value falls against that of currencies of the countries of the traders, then for them buying gold from the US becomes cheaper. The opposite thing happen when Dollar becomes more valuable. So, fluctuations in the value of the greenback also impacts demand for the shining metal and hence the price.
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