Gold and silver prices hit record highs, hovering around $2,299.87 and $27.11 levels

Both gold and silver zoomed in the domestic market amidst a sharp rally in industrial metals

Gold and silver prices hit record highs, hovering around $2,299.87 and $27.11 levels

Gold prices opened on the Multi Commodity Exchange (MCX) on Thursday at Rs 69,868 per 10 grams and hit an intraday low of Rs 69,755. In the international market, prices hovered around $2,299.87 per ounce.

Meanwhile, silver opened at Rs 79,099 per kg and hit an intraday low of Rs 79,099 on the MCX. In the international market, the price hovered around $27.11 per ounce.

Additionally, Anuj Gupta, Chief of Commodity and Currency at HDFC Securities, said, “Yesterday again, gold prices increased sharply by 1.26% and reached a new high of Rs 69918 MCX June contract per 10 grams. Silver prices also rose by 2.56% and reached a new high of Rs 79197 per kg in MCX May contract.”

Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “Gold prices hit record highs in early Asian trade, on the back of weakness in the dollar amid uncertainty over US interest rate cuts, while increased safe-haven demand also aided prices.”

Following in gold’s footsteps, silver, too, marked an all-time high on the domestic front amidst a sharp rally in industrial metals. Persistent geopolitical tensions in the Middle East and between Russia and Ukraine and a devastating earthquake in Taiwan spurred safe haven plays into bullion and other precious metals.

Jateen Trivedi, VP Research Analyst, LKP Securities, said, “Gold prices continued their positive trajectory in MCX, registering gains of over Rs400 in morning trade at 69400. Although some minor profit booking occurred, with prices dipping towards 69150, the overall trend remained strong. This sustained rally, which has seen an increase of over Rs 3000 since March 27th when prices were at 66000, is fueled by geopolitical tensions and ongoing US-China trade issues. Additionally, expectations of interest rate cuts being implemented from June 2024 are contributing to the bullish sentiment. As long as prices remain above 68500 for the week, the outlook for gold remains positive.”

Governor Powell in his comments yesterday mentioned that the interest rates have peaked for this cycle, however they will still watch the economic numbers and inflation trend before taking any decision.

Economic data points from the US are also reported to be a bit mixed, but no major impact is being seen on metal prices. US factory orders and ADP employment change were reported better than expectations, while US JOLTS and Services PMI were reported better than expectations.

“Focus this week will be on comments from several Fed officials and non-farm payroll data, as sticky inflation and strength in the labor market are the two biggest considerations for the Fed in altering interest rates this year,” said Modi.

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