Gold at Rs 1,09,500, fresh high of $3538 in international market
Fed rate cut hopes, US economic worries and geopolitical tensions fuel yellow metal rally; silver steady at record Rs 1.26 lakh/kg
Chennai:Gold prices in the Delhi spot market surged to Rs 1,09,500 per 10 gm as the yellow metal made a fresh high in the international market after a gap of five months. Silver prices in the international market made a 14-year high and pushed Indian rates to a new all-time high of Rs 1,27,000 per kg.
Gold prices surged to $3,538 per ounce for the first time in history, after having touched $3500 in the month of April. This saw gold in the Delhi spot market go up to Rs 1,09,500 per 10 gm and Rs 1,06,289 per 10 gm in the Multi Commodity Exchange. Silver prices in the international market went up to $40.85 per ounce, the highest level since April 2011. This helped silver prices make a high of Rs 1,25,000 per kg in MCX and Rs 1,27,000 per kg in Delhi spot market.
While gold has rallied 48 per cent this year, silver has given 50 per cent returns.
On Wednesday, gold and silver gained as the market continued speculating on the US Federal Reserve’s interest rate cuts. US President Donald Trump has been putting pressure on the Fed for rate cuts.
Meanwhile, the SCO meeting in China has supported gold’s movement. During the summit attended by several world leaders, China announced the formation of a SCO development bank. This news may have been seen as both a new source of geopolitical risk and a challenge to the dollar’s dominance.
“The gold ETF buying, the technical breakout at $3500 and the restricted dollar movement are also supporting gold prices,” said Ajay Kedia, MD, Kedia Commodities.
In the MCX, gold is expected to rally towards Rs 1,08,500 before Diwali and silver could see Rs 1,30,000 levels. “However, entering the metals at the current levels could be risky,” said Kedia.
