Gold prices surged by ₹250 to reach a new all-time high of ₹78,700 per 10 grams on Monday, fueled by steady demand from jewelers and a strong performance in international markets. This rise comes after closing at ₹78,450 per 10 grams last Friday.
On the other hand, silver experienced a decline of ₹200, dropping to ₹94,000 per kg from ₹94,200 per kg on Friday, according to the All India Sarafa Association.
Factors Driving the Price Increase
Gold with 99.5 percent purity also saw an increase of ₹200, hitting an all-time high of ₹78,300 per 10 grams compared to ₹78,100 per 10 grams in the previous session. This uptick in gold prices can be attributed to a rise in domestic demand from stockists and retailers.
Moreover, the downturn in equity markets has pushed investors towards safer assets like gold, further boosting its demand and price.
In the Asian trading hours, Comex gold is up by 0.14 percent, trading at USD 2,671.50 per ounce.
Expert Insights on Market Trends
According to Kaynat Chainwala, AVP-Commodity Research at Kotak Securities, “Gold prices may continue to trade in a narrow range as caution prevails ahead of upcoming US inflation numbers.” This suggests that the market sentiment and uncertainty around economic indicators could play a significant role in gold price movements.
On the contrary, silver prices dropped by 0.61 percent to reach USD 32.20 per ounce in global markets.
Looking ahead, Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, mentioned, “Gold prices saw a positive surge driven by escalating geopolitical tensions between Iran and Israel. Key upcoming events such as the US Fed’s meeting minutes and US CPI data will provide crucial indicators for gold’s next move. Support levels in MCX are placed at ₹75,600-₹75,750, with resistance at ₹76,450-₹76,650. Additionally, India’s upcoming RBI policy announcement is expected to influence the rupee, potentially impacting gold prices further.”
Additional Insight:
It’s important to note that geopolitical tensions and economic data play a significant role in influencing gold prices, as investors turn to the precious metal as a safe-haven asset during times of uncertainty. Keeping a close watch on global events and economic indicators can provide valuable insights into the future movements of gold prices.
