Gold Price Reclaims Rs 97,000-Mark In Retail Market After Jump In Global Rates
On the global front, spot gold experienced a substantial increase of $39.05 or 1.22%, reaching $3,241.82 per ounce.
Gold prices in the national capital witnessed a significant rally of Rs 580, reaching Rs 97,030 per 10 grams on Monday. This surge was primarily driven by strong positive trends observed in the international markets, according to the All India Sarafa Association. On Friday, the precious metal of 99.9 per cent purity had closed at Rs 96,450 per 10 grams.
Gold with 99.5% purity also climbed by Rs 580 to reach Rs 96,580 per 10 grams on Monday, compared to its previous closing price of Rs 96,000 per 10 grams.
Chintan Mehta, Chief Executive Officer at Abans Financial Services, commented, "Gold prices edge higher, but remain under pressure, as softer US PPI and CPI data for April indicate disinflation." He further noted, "At the same time, the US Treasury yield is approaching 4.5%, extending Friday's rebound after rating agency Moody's downgraded the US credit rating from Aaa to Aa1." Mehta added that "this move has reignited interest in gold, as investors reduce exposure to US Treasury bills and seek a safe haven asset."
The most actively traded contract for gold futures on the Multi Commodity Exchange or MCX rallied by Rs 1,182 or 1.28% cent to trade at Rs 93,623 per 10 grams.
On the global front, spot gold experienced a substantial increase of $39.05 or 1.22%, reaching $3,241.82 per ounce.
Pranav Mer, Vice President, EBG - Commodity & Currency Research at JM Financial Services, stated, "Focus during the week will be on the US macroeconomic data such as manufacturing/ services PMI, and housing data."
According to Goldman Sachs, gold is expected to rise to $3,700 per ounce by the end of 2025. This optimistic outlook is based on the continued buying of the precious metal by central banks every month. The commodity is also anticipated to climb as Exchange Traded Fund or ETF investors increase their holdings in anticipation of interest rate cuts by the US Federal Reserve and amid growing concerns about a potential recession. In the event of a recession, Goldman Sachs forecasts that gold could potentially rise to as much as $3,880 per ounce, as mentioned in a note by the investment banking firm.
In line with gold's performance, silver also appreciated, gaining Rs 500 to reach Rs 98,500 per kg. The white metal had ended the trading session on Friday at Rs 98,000 per kg. Silver futures for July delivery also saw an increase of Rs 662, trading at Rs 95,980 per kg on the commodities bourse.
(With inputs from PTI)
