Gold prices drop slightly ahead of Dhanteras 2024, here's why

Despite a short term dip, gold mostly outperformed the stock market with the Sensex rising only 10.79% this year while gold prices rose 30% since last Diwali

Updated on: Oct 29, 2024, 07:28:49 IST

By HT News Desk

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Spot gold prices declined to ₹77,917.00 per 10 grams around 6:20 pm IST on Monday, October 28, 2024, the day just before Dhanteras, according to MCX data. This comes after prices had consistently rallied for most for the better part of the year.

Notably, the recent dip in the prices of Gold can be linked to a strengthened US dollar (currently at ₹84.0725 per dollar), as investors are closely monitoring US macroeconomic data, including inflation and GDP reports, to gauge potential rate cuts by the Federal Reserve.

Meanwhile, Gold futures prices on the MCX for December 05, 2024 dropped slightly by 0.04% or by ₹30 to ₹78,536.

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Notably, the recent dip in the prices of Gold can be linked to a strengthened US dollar (currently at ₹84.0725 per dollar), as investors are closely monitoring US macroeconomic data, including inflation and GDP reports, to gauge potential rate cuts by the Federal Reserve.

Dhanteras

The slight short-term drop in gold prices comes just before the day of Dhanteras. Historically, gold prices around the time of Dhanteras and Diwali have surged nearly 30% since the past year.

Jewellers and retailers in India are expecting the demand to stay muted and volumes to decline this Dhanteras despite lower customs duty as the price of the yellow metal has hit record-high levels ahead of Diwali festivities.

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In fact, gold has outperformed domestic equities, with the benchmark BSE Sensex rising only 10.79% this year, making it a compelling investment choice amidst market fluctuations.

Global stock index

Global stock indices rose on Monday as investors awaited earnings reports this week from several of the biggest U.S. tech-related companies, while oil prices dropped 6% after Israel's retaliatory strike against Iran at the weekend bypassed oil and nuclear facilities.

The Japanese yen fell to a three-month low against the dollar following an election in Japan thrust the country into political turmoil.

US earnings season is in full swing, with a long list of names due to report this week including five of the biggest US companies: Google parent Alphabet, Microsoft, Facebook owner Meta Platforms, Apple and Amazon.com.

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HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

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