Gold buyers in Bangalore woke up to slightly cheaper rates on July 6, as both 22 carat and 24 carat prices slipped for another day even while the yellow metal staged a strong comeback on the global stage. The pullback in the local market arrived alongside a sharp cut in silver, making it a mixed morning for anyone tracking precious metals in the city.
What gold costs in Bangalore today
In Bangalore, 10 grams of 24 carat gold now sells for Rs. 1,46,620 after shedding Rs. 110 from the previous level. This is the purest variety, and it is the benchmark most jewellers quote for coins and bars. The 22 carat grade, which is the one most commonly used for ornaments and everyday jewellery, eased by Rs. 100 to settle at Rs. 1,34,400 for 10 grams. The dips look modest, but they add up quickly for buyers planning bigger purchases such as wedding sets.
This softening is not unique to Bangalore. Most Indian cities saw gold rates drift lower on the same day, so shoppers across the country are seeing a similar trend at their local counters.
Silver takes a bigger knock
Silver fell far more steeply than gold. In Bangalore the white metal dropped by Rs. 5,000 per kilogram, a notable reversal after it had climbed for three sessions in a row last week. One kilogram of silver now costs Rs. 2,45,000. For those buying in smaller lots, 100 grams of silver is available at Rs. 24,500, down by Rs. 500 from the earlier level.
Futures point lower on MCX
The mood in the derivatives market echoed the spot correction. On the Multi Commodity Exchange, both gold and silver futures were trading in the red. The gold contract set to expire on August 5 slipped 0.05% to Rs. 1,47,300 per 10 grams. Silver futures with a September 4 expiry fell harder, down 0.44% to Rs. 2,36,371 per kilogram in morning trade.
Why global gold is rallying
The local dip masks a powerful move overseas. In the international market, spot gold jumped to $4,170 per ounce and logged a 2% gain for the week, snapping a run of four straight weekly declines. The trigger was a batch of weaker than expected U.S. jobs numbers.
Akshat Siddhant, Lead quant analyst at Mudrex, explained the driver behind the bounce. "The rally was caused by weaker-than-expected U.S. jobs data, which reduced expectations of a near-term Federal Reserve rate hike and boosted demand for non-yielding assets. Silver also remained firm, extending last week's gains," he said. Softer jobs data tends to cool expectations of higher interest rates, and when rates look less likely to rise, non-yielding assets like gold become more attractive to investors chasing safety and returns.
What analysts expect next
The near-term outlook from brokerages leans bullish. A Nirmal Bang Securities note dated July 6 said, "Gold prices are expected to rise. One can buy at Rs. 147000 with a stop loss of Rs. 145500 for the target at Rs. 149500- Rs.151000." In plain terms, the desk sees room for prices to climb toward Rs. 1,49,500 to Rs. 1,51,000, while advising traders to cap their risk below Rs. 1,45,500.
The latest Kotak Commodity report struck a similar tone: "Spot gold traded near $4,160 per ounce after its first weekly advance since May, as weaker-than-expected US jobs data reduced expectations of near-term Federal Reserve rate hikes and supported bullion." Taken together, the two views suggest that today's small dip in Bangalore may be a pause rather than the start of a deeper slide, with global cues still tilting in gold's favour.
