Gold and Silver Prices Hit Fresh Record Highs
Gold and silver prices reached new record highs on Friday, driven by bullish global trends. In Delhi, gold surged to Rs 74,100 per 10 grams, marking a Rs 400 increase from the previous day’s closing price of Rs 73,700 per 10 grams. Similarly, silver prices also rose by Rs 100 to touch a new peak of Rs 86,600 per kg.
Bullish Global Trends Driving Prices
According to Saumil Gandhi, a Senior Analyst of Commodities at HDFC Securities, spot gold prices in Delhi were trading at a record high of Rs 74,100 per 10 grams due to positive trends in overseas markets. The spot gold at Comex was trading at USD 2,390 per ounce, up by USD 15 from the previous close. These price hikes were attributed to geopolitical tensions, specifically reports of Israel striking targets on Iranian soil. Such events can potentially escalate into larger regional conflicts, prompting investors to seek safe-haven assets like gold.
Impact of US Inflation Data on Gold Prices
In addition to geopolitical factors, US inflation data has also impacted gold prices. Market analysts have noted that the hotter than expected US inflation figures have led Federal Reserve officials to consider maintaining high interest rates for a longer period. This change in stance from earlier indications of possible rate cuts has caused uncertainty among investors, further supporting the demand for gold as a safe asset.
Looking Ahead
Jateen Trivedi, VP Research Analyst of Commodity and Currency at LKP Securities, highlighted the importance of keeping an eye on news developments related to geopolitical tensions and updates on interest rates from the Federal Reserve. These factors are likely to continue influencing gold prices in the near future.
In conclusion, the combination of geopolitical tensions, US inflation data, and Federal Reserve policy shifts are contributing to the record-high prices of gold and silver. Investors should closely monitor these factors to navigate the volatile precious metals market effectively.
