Gold Prices Drop to Rs 89,660 Today, Check Gold and Silver Price of Major Cities

Gold Prices Fall to Rs 89,660 as Retail Demand Slows

Gold prices fell in early trading on Monday, March 17, as poor demand from jewellers and retailers put pressure on the market. Gold prices remained near the US$3,000 per ounce mark on global markets despite the fall, thanks to geopolitical uncertainty and economic uncertainty.

The recent dip comes after a strong rally in the previous week when gold first crossed the US$3,000-mark, fuelled by recession worries in the US, Chinese central bank's aggressive bullion purchases, and simmering geopolitical tensions.

Gold Prices in Domestic and Global Markets

In the Indian market, the price of 24-carat (24K) gold dropped by Rs 10 to Rs 89,660 per 10 grams, and that of 22-carat (22K) gold dropped to Rs 82,190 per 10 grams. This follows a drop by Rs 110 per 10 grams reported on Saturday.

In Delhi, 24K gold cost Rs 89,810 per 10 grams and that of 22K sold for Rs 82,340 per 10 grams, a decrease by Rs 10 compared to the earlier session.

Despite the temporary fall, experts indicate that gold is in an uptrend, with buyers resorting to the metal as a hedge against economic uncertainty and inflationary pressures globally.

Most Important Factors Influencing Gold Prices

The factors that influence the rise and fall of gold prices are:

US Economic Worries: Investors are still wary of risk as there are indications of the economy slowing down in the US. Consumer confidence has fallen to a two-and-a-half-year low, with worries growing that increasing inflation and aggressive trade policies may slow down economic growth.

Geopolitical Uncertainty: Tensions have mounted after US military attacks on Yemen's Houthi rebels, which have interfered with shipping in the Red Sea. It goes on to state that the United States intends to continue targeting the Iran-backed group, which will add to global instability.

Central bank activity: The central bank of China is buying lots of gold, which is helping to sustain the bullish tone for the metal. This is thought to be an attempt to keep diversifying out of the US dollar due to rising international trade tension.

Indian Demand and Retail-Festive Demand: Recent price corrections notwithstanding, retail buyers and jewellers' demand continues to be weak. But with festival and wedding seasons around the corner, a likely pick-up in demand could settle prices.

Gold and Silver Prices Across India

Market Outlook: What Is Next for Gold

According to analysts, gold will be volatile in the coming weeks as global economic conditions and central bank policies will severely affect price movements. Near-term profit booking and lackluster domestic demand have provided a little space for gold, but there are still long-term investors who see it as a safe haven for uncertain occasions. Traders and investors will closely monitor signals regarding the US Federal Reserve's take on interest rates and geopolitical tensions shaping their sentiment.