Gold Price Slips In India, Aug 30: Yellow Metal Loses Shine, Silver Falls Too

Gold price in India on Friday witnessed slight decline but likely to soon rally for second consecutive month amid rising prospects of US Federal Reserve rate cut in September. Meanwhile, traders are keenly looking forward to US inflation data for more cues on rate cut trajectory. 22K gold prices today slipped marginally by Rs 100 to settle at Rs 67,050/10 grams and 100 grams of 22 carat precious metal prices today slipped by Rs 1000 to end at Rs 6,70,500 in India on August 30, 2024. 24K gold price today in the country stood at Rs 73,150/10 grams after fall of Rs 100 and 100 grams of 24 carat yellow metal prices today dived by Rs 1000 to Rs 7,31,500.

18K gold prices today declined by Rs 80 to Rs 54,860/10 grams and 100 grams of 18 carat yellow metal prices today stood at Rs 5,48,600 after decline of Rs 800. 1 gram gold rate today for 22k gold prices fell by Rs by Re 10 to Rs 6705 and 1 gram gold price today for 24k gold slipped by Rs 10 to Rs 7315. 1 gram gold price today for 18k gold fell by Rs 8 to 5486.

Spot Gold, Spot Silver Prices Today: Spot gold was down 0.3% at $2,513.70 per ounce as of 0543 GMT. The bullion is up about 3% for the month. U.S. gold futures fell 0.5% to $2,547.10. Spot silver was flat at $29.44 per ounce, while palladium rose 0.1% to $981.00. Both metals are on track for monthly gains, according to Reuters.

Speaking on the current yellow metal prices movement, Shobhit Rajan, Alnoor Jamal & Nazir Mussa said, Gold prices are sustaining above $2500 (Rs 71700) amid the likelihood of the Fed's first rate cut in September. Despite the US economy's resilience, GDP data have pushed the Greenback higher. The second estimate of US GDP for Q2 2024 indicated a considerable rise from 1.4% in Q1 to 3%, above previous projections of 2.8%.

Gold prices set for a monthly gain: What to expect in the coming weeks

Gold prices saw a minor decline on Friday (August 30) but are on track for a second consecutive month of gains. Spot gold was trading at $2,513.99 per ounce, a decrease of 0.3%.

However, it is set to finish the month with an approximately 3% increase, according to news agency Reuters.

US gold futures also fell by 0.5%, settling at $2,547.60 per ounce

In India, gold prices on August 30, 2024, were steady.

The cost for 24-carat gold was ₹73,150 per 10 grams, while 22-carat gold was priced at ₹67,050 per 10 grams.

What’s ahead for gold prices?

Gold remains resilient amid expectations of a Federal Reserve rate cut in September.

Traders have priced in a substantial chance of this rate cut, with a 66% probability for a 25-basis-point reduction and a 34% chance for a 50-bps cut, according to the CME FedWatch tool.

Shobhit Rajan, Alnoor Jamal & Nazir Mussa, said "Gold prices are sustaining above $2,500 per ounce (₹71,700 per 10 grams) amid the likelihood of the Fed's first rate cut in September. Despite the US economy's resilience, GDP data have pushed the Greenback higher. The second estimate of US GDP for Q2 2024 indicated a considerable rise from 1.4% in Q1 to 3%, above previous projections of 2.8%. The PCE Deflator showed that inflation fell from 3.1% to 2.5% QoQ, somewhat more than the expected 2.3%."