Gold Prices Steady Near Rs 72,000 As Dollar Gains

Gold prices in the national capital dropped by Rs 70 to Rs 72,080 per 10 grams on Friday, following global trends, as per HDFC Securities. In the last session, the valuable metal had closed at Rs 72,150. Silver prices also declined by Rs 250 to Rs 90,700 per kg.

"In Delhi markets, spot gold prices (24 carats) are trading at Rs 72,080 per 10 grams, down by Rs 70 from the previous close," Saumil Gandhi, senior analyst of commodities at HDFC Securities, said.

In the futures market, on the Multi Commodity Exchange, gold contracts for August delivery traded 0.34% higher at Rs 71,379, in a business turnover of 14,738 lots. Fresh positions built up by participants led to a rise in gold prices, analysts said.

In the global markets, the price of spot gold on Comex stood at $2,310 per ounce, dropping $3 from the last closing price. This was attributed to a strengthening U.S. dollar and the recent hawkish stance taken by the U.S. Federal Reserve, Gandhi said.

Experts suggest that the current pressure on yellow metal prices is a result of the Fed's aggressive stance on interest rates. While the U.S. central bank previously kept interest rates steady, its recent comments indicate a more hawkish approach towards rate cuts in 2024.

This change in policy, from three anticipated rate cuts to only one this year, has caused the U.S. dollar and Treasury yields to rise, consequently affecting the price of gold.

"Retail gold demand from Asian countries is expected to remain robust this year amid geopolitical uncertainties," experts said.

(With PTI inputs)