Gold Rebounds And Moves Closer To $5000, Silver $100
Gold prices in the international market surged to a new record above $4,960 per ounce on Friday, rebounding from Thursday’s lows.
Chennai: Recovering the losses from Thursday’s trade, gold prices moved closer to $5000 per ounce while silver prices hovered around the $100 mark on Friday, amidst renewed geo-political tensions. The Multi Commodity prices rebounded on Friday from Thursday’s lows and made a new intraday high, while in the spot market, gold and silver prices were still lower than Wednesday’s levels.
Gold prices in the international market surged to a new record above $4,960 per ounce on Friday, rebounding from Thursday’s lows. Silver surged to new record highs on Friday, rising nearly 3 per cent toward $99 an ounce, driven by a weaker dollar and strong demand for real assets.
In the Multi Commodity Exchange, gold prices moved in a wide range of Rs 1,55,248 per 10 gm and a record high level of Rs 1.59,226. Gold prices moved past Rs 1,58,339 level, made on Wednesday, before correcting on Thursday. In the case of silver, prices moved in a range of Rs 3,27,502 per kg and a record high Rs 3,39,927, higher than Wednesday’s Rs 3,35,521 per kg.
However, in the Delhi spot market, gold and silver prices traded below Wednesday’s record high levels despite recovering from Thursday’s decline. Gold was priced Rs 1,58,500 per 10 gm and silver Rs 3,29,500 per kg, below Wednesday's highs of Rs 1,60,000 for gold and Rs 3,35,000 for silver. After the crash of gold and silver ETF prices on Thursday, the demand for the metals was lower in the spot market as people got weary of the movement of the metal prices, said Surender Jain of the Delhi Bullion Association.
On the global front, gold and silver were supported by persistent geopolitical uncertainty and a softer US dollar. Developments around US relations with Europe and Greenland have kept risk sentiment fragile, sustaining demand for safe-haven assets.
“On the macro front, US inflation data showed disinflation progressing steadily, reinforcing expectations of monetary easing despite resilient economic activity. Markets are increasingly confident that the Federal Reserve will deliver two rate cuts later this year. Investor attention is also turning to President Trump’s forthcoming decision on the next Fed chair, as a more dovish appointment could strengthen expectations for further easing and provide additional upside support for gold prices,” said Ajay Kedia, MD, Kedia Commodities.
The rally in silver was also supported by a historic short squeeze, robust retail buying, and tighter Chinese export controls.
