Gold prices dipped on Friday following a near-record peak in the prior session, buoyed by a strengthening dollar. However, they remained poised for a weekly increase after the U.S. Federal Reserve’s announcement of anticipating three rate cuts in 2024.
Spot gold was down by 0.7% at $2,166.20 per ounce, as of 1026 GMT. It was positioned for a fourth weekly advance in five, currently up by 0.5%. U.S. gold futures also experienced a decline of 0.8%, reaching $2,168.
Also read: Gold and silver prices Today on 22-03-2024 : Check latest rates in your city
Back home, gold prices plummeted by ₹875 to reach ₹66,575 per 10 grams in the national capital on Friday, influenced by subdued trends in global markets. In the preceding trade, the valuable metal had reached a settlement price of ₹67,450 per 10 grams.
The rise in the dollar pushed it to its highest level in a month, thereby increasing the cost of gold for holders of other currencies.
“Gold prices are down nearly 2% from their all-time hit yesterday weighed by profit-booking/ long liquidation, and a sharp rebound in the U.S. dollar index above 104, following events like rate cuts by the Swiss National Bank, better than expected PMI and housing data from the U.S,” said Pranav Mer, VP – Research (Commodity & Currency) BlinkX and JM Financial.
Gold prices reached a fresh all-time high on Thursday, marking the fifth instance this month. This surge occurred amidst statements from Federal Reserve members affirming their intention to implement a three-quarters of a percentage point rate cut this year, despite the latest indications of robust inflation.
“Gold prices experienced a correction over the last two days, influenced by a rise in the dollar index and profit booking following a strong bullish rally in March, which saw prices climb from 63000 to 66900. Despite this correction, the overall outlook for gold remains positive. However, some volatility and further correction may be expected in the near term. Gold is anticipated to trade within a range of 65250-66500,” said Jateen Trivedi, VP Research Analyst, LKP Securities.
Also read: When will gold prices fall?
According to Bank of America Global Research, investment in gold surged to its highest level in nearly a year during the week ending Wednesday, while investors withdrew funds from cash equivalents and stocks.
Silver declined by 0.8% to reach $24.57 per ounce, while platinum saw a 0.2% decrease to $905.90, and palladium experienced a 0.3% drop to $1,007.75. Each metal was poised for a weekly decline.
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Published: 22 Mar 2024, 05:42 PM IST
