MCX Gold At New High While Lower Premiums And Strong Rupee Curb Physical Market Rates

Chennai: Gold prices in the international market crossed $4250 per ounce, following which the prices in Multi Commodity Exchange made a fresh high of Rs 1,28,457 per 10 gm. However, the dip in premiums due to slowing demand and strengthening rupee saw the Delhi spot market prices cooling off from earlier levels.

Internationally, gold moved up to $4254 per ounce as the market kept speculating about the US Federal Reserve going ahead with rate cuts in October and December.

“Gold prices extended their rally to fresh highs as expectations grew for an imminent Federal Reserve rate cut following Chair Jerome Powell’s remarks on labour market softness. The prospect of lower interest rates and a weaker dollar enhanced gold’s attractiveness as a safe-haven asset. Meanwhile, rising US-China trade frictions over rare earth exports and potential US countermeasures added geopolitical uncertainty, while the ongoing government shutdown continued to weigh on investor sentiment and the broader economic outlook,” said Ajay Kedia, MD, Kedia Commodities.

The prices in Multi Commodity Exchange made a fresh high of Rs 1,28,457 per 10 gm, but the upside was limited as the rupee turned stronger after the possibility of a trade deal between the US and India became clearer. However, in the Delhi spot market, gold and silver prices cooled down from the levels seen in the previous session.

Gold was priced Rs 1,31,000 on Thursday against Rs 1,32,000 and silver prices stood at Rs 1,84,000 against Rs 1,88,000 on Wednesday. With the prices shooting up in the past few days, the demand remained subdued and the premiums, which had sharply gone up amidst higher demand and lower supply, lowered on Thursday.

“The stronger rupee too curbed the movement of the precious metals,” said Surender Jain of Delhi Bullion Association.