Gold prices rose, while silver has surpassed a two-year high at fourth successive session

The increase in value of gold can be ascribed to several factors, such as the intensifying tensions in the Middle East, the expectation of interest rate reductions in the United States, and ongoing inflation.

Money

By Sneha Sengupta On Apr 3, 2024

On Wednesday, gold prices hit a new high, the fourth straight session of record highs. The increase in value of gold can be ascribed to several factors, such as the intensifying tensions in the Middle East, the expectation of interest rate reductions in the United States, and ongoing inflation.

After peaking at $2,288.09 earlier, spot gold saw a 0.1% gain to $2,283.07 per ounce at 10:55 a.m. EDT (1455 GMT). US gold futures increased by 0.9% to $2,303.50 in the meantime.

“Gold rises to yet record high above $2,280 per ounce in the overseas futures and ₹69,487 per 10gm on MCX futures. Technically, we have already seen a rally of nearly 10% in the past 5-weeks, now we expect some profit-booking,” stated Pranav Mer, VP – Research (Commodity & Currency) at BlinkX and JM Financial.

Due to a rise in the price of precious metals globally, gold prices increased by ₹830 domestically on Wednesday, hitting a record high of ₹69,200 per 10 grams, as reported by HDFC Securities.

Since the beginning of the year, the price of gold has increased by more than 10%. Gold is regarded as a safe haven during times of political and economic unrest as well as a hedge against inflation.

“Gold prices continued their positive trajectory in MCX, registering gains of over ₹400 in morning trade at 69400. Although some minor profit booking occurred, with prices dipping towards 69150, the overall trend remained strong. This sustained rally, which has seen an increase of over ₹3000 since March 27th when prices were at 66000, is fueled by geopolitical tensions and ongoing US-China trade issues. Additionally, expectations of interest rate cuts being implemented from June 2024 are contributing to the bullish sentiment. As long as prices remain above 68500 for the week, the outlook for gold remains positive,” mentioned Jateen Trivedi, VP Research Analyst at LKP Securities.

Investors are looking forward to Fed Chair Jerome Powell’s comments later today in an attempt to learn more about when the central bank would likely announce its much-anticipated first rate cut.

In the meantime, the price of silver shot up 2.6% to $26.83 an ounce, its highest level in almost two years. Silver saw a significant spike on MCX, rising by ₹1,700 to settle at ₹80,700 per kg as opposed to its previous closing of ₹79,000 per kg.

Palladium had a 0.9% increase to $1,013.00, while platinum saw a 1.6% increase to $933.55.

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