Gold and silver prices continued to rise for the second consecutive day, reaching fresh all-time high levels on Tuesday. The surge in prices was attributed to strong trends in the international markets, particularly due to fears of escalating tensions in the Middle East.
Gold prices soared by Rs 700 to reach a lifetime high of Rs 73,750 per 10 grams in the national capital on Tuesday, up from Rs 73,050 per 10 grams on Monday. Similarly, silver prices also jumped by Rs 800 to hit a record high of Rs 86,500 per kg.
Insight: The rise in gold and silver prices can also be linked to investors seeking safe haven assets amidst uncertainty in the global geopolitical landscape, especially in regions like the Middle East.
Global Market Trends and Impact on Prices
According to Saumil Gandhi, Senior Analyst, Commodities at HDFC Securities, spot gold prices in Delhi were trading at a new record high of Rs 73,750 per 10 grams, following positive cues from overseas markets. In the global markets, spot gold at Comex was trading at USD 2,370 per ounce, up by USD 15 from the previous close.
Insight: The increase in gold prices can be attributed to heightened demand for the safe haven asset due to escalating tensions between Iran and Israel in the Middle East.
Market Outlook and Factors Influencing Prices
Investors are closely watching for US Federal Reserve Chair Jerome Powell’s speech on Tuesday, after higher-than-expected inflation data last week. This speech is expected to provide more insights into the monetary policy outlook. However, elevated US Treasury yields and a strong dollar may limit the upside in precious metal prices and keep them volatile, as mentioned by Praveen Singh – Associate VP, Fundamental Currencies and Commodities at Sharekhan by BNP Paribas.
Insight: Volatility in gold and silver prices is expected to continue as investors assess the impact of geopolitical tensions and economic indicators on precious metals.
Futures Trade and Market Sentiment
In futures trade on the MCX, the most traded June contract of gold was priced at Rs 72,626 per 10 grams, up by Rs 349 or 0.48 percent. The August delivery contract of gold was trading at Rs 72,800 per 10 grams. On the other hand, the May contract of silver was trading lower at Rs 83,537 per kg on the Multi Commodity Exchange (MCX).
Insight: Despite short-term fluctuations, the sentiment remains bullish for gold as long as geopolitical tensions persist and possibly escalate, as mentioned by Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities.
Gold and silver prices continued to rise for the second consecutive day, reaching fresh all-time high levels on Tuesday. The surge in prices was attributed to strong trends in the international markets, particularly due to fears of escalating tensions in the Middle East.
Gold prices soared by Rs 700 to reach a lifetime high of Rs 73,750 per 10 grams in the national capital on Tuesday, up from Rs 73,050 per 10 grams on Monday. Similarly, silver prices also jumped by Rs 800 to hit a record high of Rs 86,500 per kg.
Insight: The rise in gold and silver prices can also be linked to investors seeking safe haven assets amidst uncertainty in the global geopolitical landscape, especially in regions like the Middle East.
Global Market Trends and Impact on Prices
According to Saumil Gandhi, Senior Analyst, Commodities at HDFC Securities, spot gold prices in Delhi were trading at a new record high of Rs 73,750 per 10 grams, following positive cues from overseas markets. In the global markets, spot gold at Comex was trading at USD 2,370 per ounce, up by USD 15 from the previous close.
Insight: The increase in gold prices can be attributed to heightened demand for the safe haven asset due to escalating tensions between Iran and Israel in the Middle East.
Market Outlook and Factors Influencing Prices
Investors are closely watching for US Federal Reserve Chair Jerome Powell’s speech on Tuesday, after higher-than-expected inflation data last week. This speech is expected to provide more insights into the monetary policy outlook. However, elevated US Treasury yields and a strong dollar may limit the upside in precious metal prices and keep them volatile, as mentioned by Praveen Singh – Associate VP, Fundamental Currencies and Commodities at Sharekhan by BNP Paribas.
Insight: Volatility in gold and silver prices is expected to continue as investors assess the impact of geopolitical tensions and economic indicators on precious metals.
Futures Trade and Market Sentiment
In futures trade on the MCX, the most traded June contract of gold was priced at Rs 72,626 per 10 grams, up by Rs 349 or 0.48 percent. The August delivery contract of gold was trading at Rs 72,800 per 10 grams. On the other hand, the May contract of silver was trading lower at Rs 83,537 per kg on the Multi Commodity Exchange (MCX).
Insight: Despite short-term fluctuations, the sentiment remains bullish for gold as long as geopolitical tensions persist and possibly escalate, as mentioned by Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities.
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