Today, gold rates soared to unprecedented levels in both domestic and international markets, driven by robust US inflation figures and heightened speculation of a Federal Reserve rate cut. Comex gold prices surged to a historic high of $2,412 per troy ounce, while spot gold prices touched a new pinnacle of $2,395 per ounce during early morning trading. Concurrently, silver prices also ascended to new highs on the Multi Commodity Exchange (MCX).
Anuj Gupta, Head of Commodity & Currency at HDFC Securities, attributed the surge in gold and silver rates to market expectations of a US Fed rate cut following the release of strong US Consumer Price Index (CPI) data on Wednesday. Gupta noted that while the market initially anticipated the announcement of a rate cut cycle in the June 2024 US Fed meeting, the robust US inflation figures have expedited expectations, with a potential rate cut announcement anticipated in the upcoming April-May 2024 meeting.
Kaynat Chainwala, Senior Manager of Commodity Research at Kotak Securities, highlighted that despite the resilience of the US dollar and elevated US benchmark treasury yields, COMEX Gold prices rallied on Thursday, propelled by investor concerns over geopolitical risks amidst mixed inflation data. Chainwala emphasized that COMEX Gold futures surged to record highs in early Asian trading on Friday, surpassing $2400 per troy ounce levels, amid apprehensions of escalating conflicts in the Middle East.
Sugandha Sachdeva, Founder of SS WealthStreet, expressed optimism regarding the future trajectory of gold and silver prices in 2024, foreseeing corrective rallies interspersed with overall positive momentum. Sachdeva cited geopolitical uncertainties and the anticipated three rate cuts by the US Federal Reserve as key factors likely to buoy gold and silver prices in the coming months.
Anuj Gupta outlined important price levels to monitor, noting that MCX gold rates breached a significant hurdle at the ₹72,500 level and established a strong base at ₹71,200 per 10 gm. Similarly, silver rates surpassed the ₹84,000 mark, establishing a robust support base at ₹81,800. Gupta predicted that silver prices could reach ₹91,000 once they breach the ₹85,000 mark on a weekly closing basis, while gold prices may soar to ₹73,500 and ₹75,000 per 10 gm in the short to medium term.
