Gold prices hit a new peak of Rs 70,050 per 10 grams on Thursday, marking the second straight session of record highs. Silver prices also surged to a record Rs 81,700 per kg. The rally in precious metals was driven by strong global cues and a bullish trend in the overseas markets.
According to Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, spot gold prices in Delhi markets soared by Rs 850 on Thursday amid the bullish trend in the international markets. In fact, spot gold at COMEX was trading at USD 2,297 per ounce, up by USD 22 from the previous close.
The surge in gold prices followed Federal Reserve Chair Jerome Powell’s confirmation that an interest rate cut would likely be appropriate “at some point this year”. Traders focused on potential rate cuts, leading to increased safe-haven demand for gold.
Silver prices also saw a sharp rally, hitting an all-time high on the domestic front. The ongoing geopolitical tensions in the Middle East, Russia-Ukraine conflict, and a devastating earthquake in Taiwan further spurred safe-haven plays into precious metals.
As investors await major US economic data and PMIs from the UK and Eurozone, the outlook for gold prices remains uncertain. With the Federal Reserve’s monetary policy outlook in focus, the precious metals market is expected to remain volatile in the coming days.
