Gold Prices Surge to Record High Amid Market Uncertainty
In a significant development for the commodities market, gold prices soared to an all-time high of Rs 86,875 per 10 grams on Thursday at the Multi Commodity Exchange (MCX). This increase of 0.21 percent, or Rs 189, comes as investors flock to gold as a safe haven amidst ongoing concerns over US trade tariffs and a slowdown in global economic growth. Meanwhile, silver prices experienced a slight dip, trading at Rs 99,389 per kilogram, down 0.09 percent.
Factors Driving Gold’s Rise
The surge in gold prices can be attributed to a combination of market dynamics and investor sentiment. In March alone, gold prices jumped by Rs 2,600 per 10 grams, reflecting a robust demand for the yellow metal. The recent volatility in global markets, particularly due to trade tensions and economic uncertainties, has prompted many investors to turn to gold as a reliable store of value.
On Wednesday, both gold and silver concluded the trading day positively, with the April gold contract settling at Rs 86,686 per 10 grams, marking a 0.62 percent increase. Silver May futures also saw a rise, closing at Rs 99,476 per kilogram, up 1.37 percent. The international market mirrored this trend, with gold reaching a lifetime high driven by persistent safe-haven demand, while silver hit a three-week peak.
US Inflation Data and Market Sentiment
Recent US inflation data has added another layer of complexity to the market. Although the figures met expectations, they were slightly lower than the previous month, suggesting that the Federal Reserve may adopt a less aggressive stance on interest rates than previously anticipated. This potential shift in monetary policy could influence the direction of gold and silver prices in the coming weeks.
Manoj Kumar Jain from Prithvifinmart Commodity Research noted that both gold and silver prices are likely to remain volatile this week, influenced by fluctuations in the dollar index and upcoming US Producer Price Index (PPI) data. Jain expressed optimism that gold and silver would maintain their positions above key support levels of $2,840 and $31.40 per troy ounce, respectively, in international markets.
Price Outlook for Gold and Silver
As the market continues to react to external pressures, analysts are providing insights into the potential price movements for gold and silver. For gold, support levels are identified between Rs 86,360 and Rs 86,100, with resistance expected between Rs 87,000 and Rs 87,400. Investors are advised to consider buying around Rs 86,400, targeting Rs 87,000, with a stop loss set at Rs 86,080.
For silver, support is projected between Rs 98,600 and Rs 97,800, while resistance is anticipated between Rs 100,000 and Rs 101,400. Analysts recommend buying around Rs 98,800, aiming for a target of Rs 100,500, with a stop loss at Rs 98,000.
Current Gold Prices Across Major Indian Cities
As gold prices continue to fluctuate, here are the current rates for 22K and 24K gold in major Indian cities:
- Delhi: 22K gold is priced at Rs 57,992 for 8 grams, while 24K gold stands at Rs 61,832.
- Mumbai: 22K gold costs Rs 57,112 for 8 grams, with 24K gold at Rs 60,896.
- Chennai: 22K gold is available for Rs 56,632 for 8 grams, and 24K gold is priced at Rs 60,392.
- Hyderabad: 22K gold is valued at Rs 56,824 for 8 grams, while 24K gold is sold at Rs 60,608.As the market navigates these turbulent times, investors are advised to stay informed and consider the implications of global economic trends on precious metal prices.
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