Gold price increase driven by global market trends
The price of gold rose by Rs 300 to reach Rs 73,050 per 10 grams in the national capital, following a positive trend in global markets, as reported by HDFC Securities. This increase comes after the precious metal closed at Rs 72,750 per 10 grams in the previous session.
Silver prices also saw a significant jump, rising by Rs 500 to Rs 85,700 per kilogram, up from Rs 85,200 per kilogram in the previous trade.
Factors influencing the price hike
Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, highlighted that the spot gold prices (24 carats) in Delhi were driven by positive cues from overseas markets, with spot gold at Comex trading at USD 2,355 per ounce, an increase of USD 12 from the previous close.
The surge in gold prices has been attributed to safe haven buying, sparked by the escalation in conflict between Iran and Israel over the weekend. This geopolitical tension has diminished investor appetite for risky assets, leading to increased demand for safe haven assets like gold.
Insight into market analysis
Furthermore, silver prices were also on the rise, trading at USD 28.25 per ounce, from USD 27.84 per ounce in the previous session. Market analysts pointed out that recent US inflation data has lessened the likelihood of an interest rate cut by the US Federal Reserve in June.
Looking ahead, it will be crucial to monitor the geopolitical landscape to assess if other nations choose to intervene, potentially intensifying the crisis and impacting bullion prices.
Upcoming economic indicators to watch
Navneet Damani, Senior VP of Commodity Research at Motilal Oswal Financial Services, emphasized the importance of keeping an eye on the European Union’s IIP (Index of Industrial Production) and US Retail sales data scheduled for release on Monday. These economic indicators are expected to provide further insights into the direction of bullion prices.
