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Gold prices surged by Rs 850 to reach a new peak of Rs 70,050 per 10 grams on Thursday, buoyed by robust global cues, as reported by HDFC Securities.
This marks the second consecutive session that the prices of the precious metal have soared to all-time high levels. In the preceding trade, gold settled at Rs 69,200 per 10 grams.
Similarly, silver prices witnessed a significant jump of Rs 1,000, reaching a record high of Rs 81,700 per kg. In the previous session, silver had concluded at Rs 80,700 per kg.
Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, highlighted the bullish trend in the overseas markets, attributing the surge in spot gold prices (24 carats) in Delhi to the same. He stated, “Spot gold prices in the Delhi markets are trading at Rs 70,050 per 10 grams, up by Rs 850, amid a bullish trend in the overseas markets.”
In the international markets, spot gold at COMEX was trading at USD 2,297 per ounce, marking an increase of USD 22 from the previous close.
The rally in gold prices gained further momentum after Federal Reserve Chair Jerome Powell affirmed that an interest rate cut would likely be appropriate “at some point this year.” Analysts noted that traders are focusing on potential rate cuts rather than the timing of the first rate cut, contributing to the bullish sentiment surrounding gold.
Silver was also trading higher at USD 27.05 per ounce. It had closed at USD 26.25 per ounce in the previous session.
“Gold continues to hover around its all-time high levels on the back of weakness in the dollar amid uncertainty over US interest rate cuts, while increased safe-haven demand also aided prices.
Impact Shorts
More Shorts“Additionally, silver prices too marked an all-time high on the domestic front, amidst a sharp rally in industrial metals,” Navneet Damani, Senior VP of Commodity Research at Motilal Oswal Financial Services, said.
Persistent geopolitical tensions in the Middle East and between Russia and Ukraine, coupled with a devastating earthquake in Taiwan, spurred safe haven plays into bullion and other precious metals, Damani added.
According to Praveen Singh Associate VP, Fundamental Currencies and Commodities at Sharekhan by BNP Paribas, “Major US economic data, including weekly jobless claims to be released on Thursday, will provide more insights on the US Federal Reserve’s monetary policy outlook”.
Investors will also look forward to services and composite PMIs out of the UK and the Eurozone, Singh added.
With inputs from PTI