Gold and silver prices continue their ascent despite a strengthening US dollar, reaching record highs fueled by speculation of a US Fed rate cut. On the Multi Commodity Exchange (MCX), gold futures for June 2024 soared to ₹70,699 per 10 gm, while silver rates peaked at ₹81,030 per kg in the latest trading session. Internationally, spot gold surged to $2,329 per ounce, hitting a high of $2,230.47 per ounce, with silver closing at $27.46 per ounce.
Commodity market analysts cite five primary factors driving the rally: anticipation of a US Fed rate cut, heightened geopolitical tensions, robust buying from China, uncertainties surrounding major global elections, and a weakening Indian National Rupee (INR).
Sugandha Sachdeva, Founder of SS WealthStreet, underscores the remarkable rally in gold prices, attributing it to rising expectations of US Fed monetary easing and escalating geopolitical tensions. She also highlights China’s aggressive buying and the appeal of gold as a safe-haven asset amidst election uncertainties and a depreciating INR.
Anuj Gupta, Head of Commodity & Currency at HDFC Securities, attributes the latest peak in gold and silver prices to the release of better-than-expected US non-farm payroll data, indicating a strong labor market.
Sachdeva points out the anticipation of a US Federal Reserve rate cut, despite mixed signals from officials, as a significant driver behind the gold price surge, with prices breaching key psychological and monetary milestones.
Looking ahead, Sachdeva predicts a bullish trend for gold prices, with intermittent dips presenting buying opportunities. She anticipates prices to test ₹72,000 per 10 gm or $2380 per ounce. Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, echoes the sentiment, suggesting that gold prices may reach ₹74,200 per 10 gm in the short to medium term.
Note: The views expressed are those of individual experts and analysts and do not represent Legal Parivar. Investors are advised to consult certified experts before making investment decisions.
