Gold and Silver Prices Soar to Fresh Highs
Gold and silver prices continued their upward trajectory for the fourth consecutive session on Friday, reaching new peaks. The price of gold surged by Rs 1,050 to surpass the Rs 73,000 per 10 grams mark, hitting a lifetime high of Rs 73,350 per 10 grams in Delhi. Similarly, silver prices also saw a significant increase, jumping by Rs 1,400 to reach a new record of Rs 86,300 per kg.
Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, attributed the rise in gold prices to positive cues from overseas markets. The spike in precious metals was driven by safe haven demand amid heightened tensions in the Middle East, particularly following concerns over potential retaliation by Iran after an Israeli strike on its embassy in Syria.
Global and Domestic Market Trends
In the global markets, spot gold at Comex traded at USD 2,388 per ounce, marking an increase of USD 48 from the previous closing level. Meanwhile, silver was also trading higher at USD 28.95 per ounce, up from USD 28.05 per ounce in the previous session. In the domestic futures trade on the MCX, gold reached an all-time high of Rs 72,828 per 10 grams during intra-day trading, with the most-traded June contract of gold standing at Rs 72,681 per 10 grams, up by Rs 1,037 or 1.45 per cent.
Potential Influences on Gold Prices
Praveen Singh, Associate VP, Fundamental Currencies and Commodities at Sharekhan by BNP Paribas, highlighted upcoming macroeconomic factors that could impact gold prices. He pointed to the release of economic data from the UK, Germany, and Chinese trade data as key indicators that could provide further direction for gold prices. Additionally, Singh noted the European Central Bank’s (ECB) decision to keep benchmark rates unchanged, but with an indication that interest rates could be cut in June. ECB President Christine Lagarde hinted at a possible rate cut in response to cooling inflation, which may impact gold prices in the coming weeks.
Insight: Market Sentiment and Potential Price Movements
Given the ongoing geopolitical tensions and economic uncertainties, market sentiment is likely to remain cautious, driving investors towards safe-haven assets like gold and silver. The rally in precious metal prices can also be attributed to a weaker US dollar, which tends to boost demand for alternative assets like gold. Investors looking to diversify their portfolio and hedge against inflation may continue to flock to precious metals, supporting the upward momentum in gold and silver prices. As economic indicators and geopolitical events unfold, it will be crucial to monitor how these factors impact the direction of precious metal prices in the near future.
