On the Multi Commodity Exchange (MCX), gold prices commenced trading on Thursday at Rs 65,800 per 10 grams, reaching an intraday low of Rs 65,771. In the international market, prices hovered around $2,169.65 per ounce.
Simultaneously, silver opened at Rs 75,349 per kg on the MCX and hit an intraday low of Rs 75,210. In the global market, the price of silver hovered around $24.92 per ounce.
Anuj Gupta, Chief of Commodity and Currency at HDFC Securities, noted that gold prices had increased by 0.7% and closed at 65,897 levels. Recent market movements saw gold reaching a new high of 66,356 levels. Silver prices also surged sharply by 1.79%, closing at 75,170 levels.
The rise in gold and silver prices was attributed to the weakening US Dollar and increased demand for safe-haven assets amid geopolitical tensions between Russia and Ukraine. Silver reached three-month highs, while gold approached lifetime high levels.
On the COMEX, gold prices rose by nearly 0.7% on Wednesday, with investors seemingly overlooking the recent uptick in US inflation numbers for February. There is an expectation that the slowdown in the labor market could prompt the Federal Reserve to cut rates in June. Geopolitical tensions, including drone attacks by Ukraine on Russia and stalled peace talks in Israel, contributed to the bullish sentiment.
Central bank buying has been robust, supporting prices amid continuous outflows from ETFs. Investors are eagerly awaiting US weekly jobless claims, PPI, and retail sales data to gain insights into the Fed‘s policy direction. The producer price index reading, scheduled for later today, will serve as the final inflation report before next week’s Fed rate decision.
COMEX Silver prices surged by more than 3% on Wednesday, influenced by gains in both bullions and industrial metals. Prospects of rate cuts by central banks, including the Fed and the ECB expected in June, are aiding silver prices. Additionally, investors are assessing the impact of China’s retail developers’ situation, which has historically limited gains in silver prices.
