International gold prices dipped on reports China paused buying
Jun 07, 2024
New Delhi [India], June 7 : International gold prices dipped over 2 per cent on Friday, with analysts attributing the decline largely to stronger-than-expected job gains in the US and weak buying from key buyer, China.
At the time of filing this report, futures prices of benchmark gold traded at USD 2,332.85 per ounce, down 2.43 per cent.
Gold on India's MCX exchange too tracked global prices and dipped over 2 per cent. It was trading around Rs 73,131 per 10 gm.
As per media reports, China's central bank paused gold purchases to its reserves in May, when spot gold prices hit a record high, after 18 months of consecutive buying.
Prices of gold, considered safe investment bets, have seen a mild correction after the latest stellar bull run. Gold prices, though, remain about 15 per cent higher so far this year.
Gold has been in demand for a considerable period, with its prices rallying to hit record highs now and then. Geopolitical conflict in West Asia that stretched for a long time, buying by several central banks, including the RBI, and physical demand, have altogether pushed gold prices northwards.
Gold is a scarce commodity, and any mismatch in demand-supply conditions may invariably trigger a sharp price rise.
The year 2024 is likely to produce a much stronger return for gold than the World Gold Council anticipated at the beginning of the year. Historically, gold, as an asset, is considered a haven as it typically manages to retain or appreciate its underlying value in times of turbulence.
