Business News: Without showing tremendous growth so far in November, a slight correction was recorded in gold prices in the last trading session. In India, 24-carat gold has risen to virtually Rs 44,700 per 100 grams this month. In comparison, silver unfurled its strong momentum like in the previous days.
This sharp reversal in prices was seen as investors are then returning to unscratched assets, and expectations of a possible rate cut by the US Federal Reserve in December have increased.
In the last days of the week, everyone's vision will be on the gold and silver rates of Friday, November 28.
Why is the demand for gold increasing during the wedding season?
Gold and silver rates in India are closely tracked not only by investors but moreover by worldwide jewelry buyers. Currently, the wedding season is going on, due to which the demand for precious metals is expected to remain strong.
Gold Rate: Fall of Rs 16 in 24 carat
Gold prices in India fell marginally on Thursday, November 27.
- 24-carat gold fell by Rs 16 to Rs 12,775 per gram.
- 22-carat gold fell by Rs 15 to Rs 11,710 per gram.
- 18-carat gold moreover declined by Rs 12 to reach Rs 9,581 per gram.
Silver Rate: Slight resurgence in silver
A slight recovery was seen in silver prices on Thursday.
- Silver rose to Rs 173 per gram.
- The price of silver per kg was Rs 173,000.
Silver prices have seen a big rise since the whence of this year due to strong industrial demand and lack of supply.
How was the trend of gold and silver in MCX?
- MCX Gold Futures with December expiry sealed at Rs 125,540 per 10 grams on November 27.
- Whereas MCX Silver Futures with December expiry sealed at Rs 162,300 per kg.
- The price of gold in the international market on Thursday was Rs 4,150 an ounce.
How could the trend of gold and silver be on Friday?
Trading volumes are expected to be limited due to the whence of the holiday season in the US. Experts believe that prices may remain stable, but gold may rise then on the expectation of Fed rate cut in December.
According to Dr. Ravi Singh, Chief Research Officer, Master Capital Services Limited:
"MCX Gold has worked strong support near 121,000-123,000. As long as prices are whilom this range, chances of ownership on dips will remain. 128,000-130,000 are difficult levels on the upside. Some consolidation is normal without a big rally, but gold is still a unscratched investment in the long term."
Experts' opinion: The Fed cut and wedding season are increasing the demand for gold
According to Aksha Kamboj, Vice President of IBJA and Executive Chairperson of Aspect Global Ventures, "Weak US economic data has increased expectations of a Fed cut, making gold an lulu investment again. The wedding season in the domestic market is moreover increasing purchases of gold jewelry. Overall, gold prices are showing a summery rise, and it still remains a reliable long-term investment."
