Whalesbook
Gold prices in India saw a dip on Monday, November 17, reflecting subdued global sentiment. Prices fell across 18-carat, 22-carat, and 24-carat gold. The decline was influenced by expectations of fewer near-term US interest rate cuts and a stronger dollar, despite a slight rebound in international spot gold. Investors await key US economic releases this week for further clarity on the Federal Reserve's policy path.
Gold prices in India experienced a decline on Monday, November 17, mirroring weaker sentiment in international markets. The price per gram for 18-carat gold dropped to ₹9,373, for 22-carat to ₹11,455, and for 24-carat to ₹12,497.
Globally, spot gold saw a marginal uptick of 0.1% to $4,083.92 per ounce, while US December futures slipped 0.2% to $4,085.30. Analysts suggest this modest rebound followed a significant selling pressure late last week that might have been 'overdone'.
However, the upward momentum for gold is being capped by persistent expectations that the US Federal Reserve may not cut interest rates as aggressively in the near future. Traders are now pricing in a lower probability of a quarter-point rate cut next month. A stronger US dollar also put pressure on gold, making it more expensive for buyers using other currencies.
Market participants are keenly awaiting upcoming US economic data, including the September nonfarm payrolls report, which could provide crucial insights into the Federal Reserve's monetary policy decisions.
Impact:
This news has a moderate impact of 5/10 on the Indian stock market. While gold prices directly influence commodity markets and investor sentiment, their impact on broader equity indices is indirect. Fluctuations in gold can affect consumer spending patterns and inflation, which in turn influence corporate earnings and market valuations. However, significant policy shifts by the US Federal Reserve or major geopolitical events would typically have a more pronounced effect.
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