Bhubaneswar: Gold prices in India and globally saw a dip on Thursday (November 7) as Republican Donald Trump’s 2024 US election victory triggered a sharp correction.
Post the US Election, gold prices fell by Rs 2,100/10 grams in the last 2 days and that of silver prices by Rs 4,050/kg.
In Bhubaneswar, the price of 24 k gold slipped by Rs 1,790 per 10 grams, bringing it down to Rs 78,560. Similarly, 22k gold prices fell by Rs 1,650 and stood at Rs 72,000 per 10 grams, according to Goodreturns data.
“With wedding season is ahead, the drop in gold prices offers an opportunity for people to buy ornaments. If people want to buy, this is the best time,” said general manager of a jewellery shop in Bhubaneswar.
In Delhi, the price of gold was Rs 78,710/10 grams for 24k gold and Rs 72,150 /10 grams for 22k gold.
Gold December futures contracts at MCX opened flat this morning at Rs 76,369 per 10 gram, down by 0.37% or Rs 286 while silver December futures contracts were trading at Rs 90,601/kg, down by 0.24% or Rs 219, according to Economics Time.
Gold had touched a record high of $2,790.15 per ounce last week, but has since dropped more than $130 per ounce. Bullion fell to $2,689.98 per oz. on Wednesday morning as the spot value of the US dollar grew by the most since 2020, according to BMO Capital Markets. It was gold’s first drop below $2,700 per oz in two and a half weeks.
Analysts believe there is potential for further price corrections in the short term. “Gold remains overbought after a three-month rally and this correction was due. A spike in US dollar after Trump’s election win, expectations of a slower interest rate cut trajectory by the US Federal Reserve, easing geopolitical tensions in the Middle East and year-end profit booking have all contributed to the correction in gold prices,” The Mint reported, quoting Director, Kedia Advisory, Ajay Kedia.
MCX gold rate may fall to Rs 74,000 – 74,500 levels and MCX silver prices may drop to Rs 87,000 – 88,000 in 1-2 months from here, he added.
