Gold prices soared by Rs 530 to reach Rs 73,080 per 10 grams in the national capital on Thursday, driven by a bullish trend in international markets, according to HDFC Securities. The yellow metal had previously settled at Rs 72,550 per 10 grams.
Silver also experienced a significant jump, rising by Rs 1,200 to Rs 92,500 per kilogram. In the prior session, it closed at Rs 91,300 per kilogram.
Saumil Gandhi, a Research Analyst at HDFC Securities, noted, “In Delhi markets, spot gold prices (24 carats) are trading at Rs 73,080 per 10 grams, up by Rs 530 from the previous close.”
Globally, spot gold at Comex was trading at USD 2,355 per ounce, an increase of USD 16 from the previous close. Silver was quoted higher at USD 30.25 per ounce, up from USD 29.80 per ounce in the previous session.
Manav Modi, Senior Analyst – Commodity Research at Motilal Oswal Financial Services Ltd, explained the rise: “Gold prices rose more than 1 percent to a nearly two-week high, while silver was up by more than 2 percent, on the back of weak US economic data, which increased rate cut bets by the Fed, a fall in the dollar index, and a rally in industrial metals.”
The minutes from the Federal Open Market Committee (FOMC) meeting revealed that US Federal Reserve Governor Jerome Powell reiterated ongoing inflation concerns and indicated that the Fed is not in a hurry to raise interest rates. Market analysts noted that the Fed is currently in a wait-and-watch mode, awaiting more data before deciding on the future interest rate path.
“Despite these comments, the market now sees a 66 percent chance of the Fed cutting interest rates in September,” Modi added.
The US market remained closed on Thursday for the Independence Day holiday. Analysts are now turning their attention to the nonfarm payrolls report due on Friday, which is expected to provide more clarity on potential US rate cuts.
Prathamesh Mallya, DVP-Research, Non-Agri Commodities and Currencies at Angel One, stated, “Gold is expected to remain buoyant amid increased bets on a potential Federal Reserve interest rate cut in September, following signs of a softening US labor market and economic slowdown.”
As global economic uncertainties continue to influence market sentiments, both gold and silver are expected to remain strong, offering investors a hedge against volatility and potential economic downturns.