Gold prices in India experienced a decrease on Friday, with both 24-karat and 22-karat gold falling by approximately 0.64 per cent. The price for 24-karat gold decreased by ₹924, bringing it to ₹1,42,469 per 10 grams. Meanwhile, the cost of 22-karat gold dropped by ₹846.39, resulting in a new price of ₹1,30,501.60 per 10 grams. This decline in gold prices coincides with an increase in crude oil prices, which have risen significantly in recent days.

The drop in gold prices is notable, especially as both categories saw a similar percentage decline compared to the previous day. The fluctuations in gold prices are often linked to changes in global economic conditions, including shifts in oil prices, which can influence investor behaviour and market sentiment.

City-Wise Gold Rates on Friday

Gold prices varied across major cities in India on Friday, reflecting local market conditions. Chennai reported the highest prices for both 24-karat and 22-karat gold, with 24-karat gold priced at ₹1,43,815.80 and 22-karat gold at ₹1,31,735.27 per 10 grams. Following Chennai, Kolkata’s prices were also significant, with 24-karat gold at ₹1,43,642.02 and 22-karat gold at ₹1,31,576.09.

In Delhi, the rates for gold were slightly lower, with 24-karat gold priced at ₹1,42,509 and 22-karat gold at ₹1,30,538.24. Bengaluru’s gold prices were similar, with 24-karat gold at ₹1,42,500 and 22-karat gold at ₹1,30,530 per 10 grams. Other cities, such as Hyderabad and Mumbai, also reported competitive prices, contributing to a diverse landscape for gold trading across the country.

The variations in gold prices across different cities can be attributed to factors such as local demand, supply chain dynamics, and regional economic conditions. These differences highlight how local markets can respond to broader economic trends, including fluctuations in international commodity prices.

Impact of Crude Oil Prices on Gold and Currency

Brent crude oil prices rose by 0.62 per cent to reach $113.87 per barrel, following recent Houthi attacks in Saudi Arabia. These events have raised concerns regarding potential disruptions to global energy supplies, which can have a cascading effect on various markets, including gold. Higher oil prices are often associated with inflationary pressures, which can influence investor decisions and market dynamics.

Additionally, the Indian rupee weakened against the US dollar, trading at ₹94.96 on Friday, compared to ₹94.8175 the previous day. The depreciation of the rupee is attributed to rising crude oil prices and concerns regarding global market risks. Currency movements can significantly impact gold prices, as a weaker rupee makes gold more expensive for domestic buyers.

The relationship between gold and crude oil prices is complex, as they often move in opposite directions. Investors typically turn to gold as a safe haven during periods of economic uncertainty, while rising oil prices can lead to increased costs for consumers and businesses alike. Understanding these dynamics is essential for navigating the financial landscape, especially in times of volatility.

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