Gold Rates In Bangalore Today: Price Jumps As RBI Keeps Repo Rate Unchanged

Gold rates in Bangalore today saw an upsurge after the RBI announced the outcome of the MPC meeting at 10 AM today. The RBI has decided to hold the rate cuts steady at 6.5% after the ECB and Bank of Canada had cut rates recently. Investors will be keeping a close eye on any hints by the Fed for the rate cuts in the second half of the year. Apart from this the ongoing discussions on the Prime Minister and Union Cabinet candidatures is also affecting the commodity and capital market in India.

RBI has decided to keep the repo rate unchanged at 6.5%. It was anticipated that RBI will keep the repo rate unchanged at 6.5% for the eighth consecutive time and continue with its stance of 'withdrawal of accommodation'. In April, the RBI maintained its inflation projection at 4.5% for the current fiscal year, which is lower than the 5.4% recorded in the previous fiscal year.

The Bank of Canada becomes the first central bank from a G-7 nation to cut rates. It slashed its policy rate by 25 basis points to 4.75 percent, signaling the commencement of a broader easing cycle. The ECB has also cut rates by 25 Base points nearly after 5 years.

The Eurosystem Staff forecasts indicate headline inflation to average 2.5% in 2024, 2.2% in 2025, and 1.9% in 2026. Excluding energy and food, inflation is projected to average 2.8% in 2024, 2.2% in 2025, and 2.0% in 2026. Economic growth is anticipated to accelerate to 0.9% in 2024, 1.4% in 2025, and 1.6% in 2026.

Gold prices in Bangalore; 24K gold surged by Rs.3,300 for 100 grams reaching Rs. 7,37,500 from Rs.7,34,200 on previous day. 10 grams went up by Rs.330, reaching Rs.73,750 compared to Rs.73,420 yesterday. While 8 grams increased by Rs.264 reaching Rs.59,000 in contrast to RS.58,736 yesterday. Lastly, 1 gram gold climbed by Rs.33 reaching 7,375 from Rs.7,342 the previous day.

The 22K gold increased at the same rate. 100 grams went up by Rs.3,000 thus reaching Rs.6,76,000 against Rs.6,73,000. Similarly, 10 grams surged by Rs.300 touching the mark of Rs.67,600 in contrast to Rs.67,300 the previous day. The 8 grams of gold boosted by Rs.264 reaching Rs.54,080 compared to previous day's closing of Rs. 53,840. Lastly, 1 gram of gold went up by Rs.30 to Rs.6,760 against Rs.6,730 the last day.

In the case of 18K, 100 grams increased by Rs. 2,500 reaching Rs.5,53,100

compared to Rs.5,50,600 the previous day. Whereas, 10 grams of gold climbed by Rs.250 reaching Rs.55,310 in contrast to Rs.55,060 the previous day. 8 grams of gold went up by Rs.200 reaching Rs.44,248 against Rs.44,048 the previous day. Lastly, 1 gram of gold surged by Rs.25 reaching Rs. 5,531 against Rs.5,506 in the previous day's closing.

According to the CME FedWatch tool, traders are currently factoring in approximately a 56% likelihood of a rate cut in September.

The Lok Sabha election results significantly impacted the stock market causing a downturn sharply. Similarly the gold rates are also facing significant fluctuations in the market.

Gold rates in Bangalore today are severely impacted by the RBI's MPC meeting outcome. The general election results and the geopolitical tensions in the world are also some of the macroeconomic factors that affect the gold rate in Bangalore.