Gold Rates Today: 24K/100 Gram Surges By Rs.3,200, Silver Increased By Rs.500 Per Kg, Latest Prices Here

Gold prices in Bangalore today surged after witnessing a sharp fall. The safe haven metal was witnessing a downfall in both the domestic and the global market as the strong US data was released last friday. Investors are now looking forward to the Fed's announcement of key interest rates and other important economic projections which is vital to decide the trajectory in the market.

Gold prices in Bangalore: 24K gold surged by Rs.1,700 for 100 grams reaching Rs.7,18,400 from Rs.7,16,700 on previous day. 10 grams went up by Rs.170, reaching Rs.71,840 compared to Rs.71,670 yesterday. While 8 grams increased by Rs.136 reaching Rs.57,472 in contrast to RS.57,336 yesterday. Lastly, 1 gram gold climbed by Rs.17 reaching 7,184 from Rs.7,167 the previous day.

The 22K gold increased at the same rate. 100 grams went up by Rs.1,500 thus reaching Rs.6,58,500 against Rs.6,57,000. Similarly, 10 grams surged by Rs.150 touching the mark of Rs.65,850 in contrast to Rs.65,700 the previous day. The 8 grams of gold boosted by Rs.120 reaching Rs.52,680 compared to previous day's closing of Rs. 52,560. Lastly, 1 gram of gold went up by Rs.15 to Rs.6,585 against Rs.6,570 the last day.

In the case of 18K, 100 grams increased by Rs. 1,200 reaching Rs.5,38,800 compared to Rs.5,37,600 the previous day. Whereas, 10 grams of gold climbed by Rs.120 reaching Rs.53,880 in contrast to Rs.53,760 the previous day. 8 grams of gold went up by Rs.96 reaching Rs.43,104 against Rs.43,008 the previous day. Lastly, 1 gram of gold surged by Rs.12 reaching Rs. 5,388 against Rs.5,376 in the previous day's closing.

Along with the announcement of Federal Reserve policy the CPI report is also due for May and will be announced on Wednesday. Market experts believe that the central bank is expected to hold the interest rates steady. The investors are looking forward to clues as when the Fed will start to cut the rates.

After the Fed's upcoming June announcement, officials will have only four rate-setting meetings left. Moreover, Traders tempered their expectations for rate cuts in September following Friday's release of stronger-than-anticipated jobs data for May. globally, the gold fell sharply last friday marking biggest one day decrease since november- 2020.

Markets only see a 2.2% chance of a quarter-point rate cut at the June 11-12 Fed meeting, according to the CME FedWatch tool. As reported by the investors.com, here are the likelihood of markets expecting a rate cut in its upcoming meetings-

For July 31, The likelihood of at least a quarter-point Fed rate cut by the July 30-31 meeting stands at 8.2%, a decline from 15.7% on May 31. On March 27, expectations were significantly higher, with an 83.7% chance of a 25 basis point easing and 35.4% for 50 basis points.

For September 18, Investors currently perceive a 50.5% chance of a quarter-point rate cut by the Sept. 17-18 Fed meeting, with a mere 3.9% chance of 50 basis points. On May 31, the probabilities leaned slightly higher with a 54.8% chance of a Fed cut and a slim 7.7% chance of 50 basis points. Back on March 27, the sentiment was even more pronounced, with 25 basis points at 95.8%, 50 basis points at 71%, and 75 basis points at 27%.

For November 7th, The odds of a quarter-point Fed rate cut stand at 64.4% by the Nov. 6-7 meeting, coinciding with U.S. elections. There's a 17% chance of 50 basis points by this Fed meeting. On May 31, markets anticipated a slightly lower probability with a 65.9% chance of a quarter-point cut and 19.3% for 50 basis points.

Approaching the final Federal Reserve meeting of the year on Dec. 17-18, investors perceive an 86.3% chance of a Fed rate cut, with only 13.7% odds of no cut at all in 2024. Markets project a 46.2% chance of two rate cuts this year, and merely 10.9% for 75 basis points.

Apart from the economic factors, the geopolitical tension in the middle east also plays a pivotal role in determining the price of gold in India. To ease the conflict in the zone The United Nations Security Council has approved a resolution proposed by the United States, endorsing a ceasefire between Israel and Palestinian militant group Hamas in the Gaza Strip.

Gold rates in Bangalore are significantly affected by the global economic cues, the Fed's decision on rate cuts that will be announced tomorrow will have a substantial impact on the commodity and the capital market.