Bangalore Gold Price Update Nov 28: 22K Gold Drops Rs. 1500 per 100g; Silver Holds Firm for the 2nd Day

Gold rates in Bangalore slipped again today after a brief rise observed yesterday. This decline follows a small increase in the U.S. dollar index, which gained momentum and put pressure on gold prices. The movement came after the release of the Core Personal Consumption Expenditures data, which showed signs of slowing inflation in the U.S., which led to expectations that the Federal Reserve's policy stance in the coming year may be less dovish than previously anticipated, which could further strengthen the dollar and affect gold's safe-haven status.

The 22-carat gold rate in Bangalore today slipped by Rs. 160 per 10 grams to cost Rs. 70,900, while the 24-carat gold prices dipped by Rs. 150 to settle at Rs. 77,300, and the 18-carat gold rate decreased by Rs. 120 to cost Rs. 58,010.

Similarly, 100 grams of 24-carat gold in Bangalore is currently priced at Rs. 7,73,000, which slightly increased by Rs. 1,600, and 22-carat gold is now standing at Rs. 7,09,000, dropping Rs. 1,500.

What's Weighing On The Bullion?

This week, the performance of Bangalore gold prices has been rather mixed with lots of ups and downs. While the week began with a negative tone, a brief upside was observed yesterday, followed by a slight correction this morning. The movement in domestic gold prices has been majorly influenced by international market trends.

The current market environment is being created by the ongoing geopolitical risks and economic data. The rising U.S. dollar index has put downward pressure on gold prices. The index is currently at 106.22, up by 0.13%, making gold less attractive for foreign currency holders.

According to reports from the U.S. Bureau of Economic Analysis (BEA), the Personal Consumption Expenditures (PCE) price index rose by 2.3% in October, signaling persistent inflationary pressures. Additionally, the U.S. Treasury yields rebounded, helping to boost the U.S. dollar and partially reversing its two-week decline, adding further pressure on gold prices.

Gold Prices In Other Major Indian Cities

All cities in India are observing a similar decline in Yellow metal prices. Here are rates in some of the major cities:

Silver Prices in Bangalore Today:

Silver prices in Bangalore remain unmoved today for the second consecutive session. At present, 1 kilogram of silver in Bangalore currently retails at Rs.89,500. Similarly, the price for 100 grams of silver stands at Rs. 8,950 on November 28, 2024.

Gold And Silver Future Prices On MCX

On the Multi Commodity Exchange (MCX), the gold futures for December 5th delivery are currently trading at Rs. 75,545 per 10 grams, down by 0.28%. In a similar fashion, silver futures for the December 5th expiry are also experiencing a fall and are down by 0.70%, trading at Rs.87,070.

Spot Gold and Spot Silver Rates

As per a latest report from Reuters, gold prices slipped on Thursday, with spot gold declining by 0.3% to $2,627.60 per ounce as of 03:02 GMT, and U.S. gold futures falling by 0.5% to $2,627.00. Spot silver also dropped by nearly 1%, reaching $29.78 per ounce. The decline in precious metals prices came as the U.S. dollar strengthened, which typically pressures commodity prices. Investors are digesting a slew of recent economic data, which has shown limited progress in curbing inflation.

This has led to speculation that the Federal Reserve may adopt a more cautious approach to any further interest rate cuts in the near term. While the immediate price action is bearish, analysts remain optimistic about gold's long-term prospects, with many maintaining a bullish outlook.

According to a recent analyst report from Reuters, the longer-term trend for gold remains intact, with a 64.7% probability of a rate cut in December. This suggests that, despite short-term volatility, gold could benefit from softer monetary policy down the line.