Gold and silver prices hit record highs, hovering around $2,299.87 and $27.11 levels

Gold prices have now been scaling record highs over each of the last seven trading sessions

April 4, 2024

Gold prices soar to new high for the seventh day in a row

On Thursday, the process for the precious yellow metal soared to a new lifetime high of Rs.69,908 per 10 gm on India’s Multi Commodity Exchange (MCX). In the international market, prices hovered around $2,299.87 per ounce.

The price of gold scaled a new all-time high in the international market for the seventh consecutive trading day.

Meanwhile, silver opened at Rs.79,099 per kg and hit an intraday low of Rs.79,099 on the MCX. In the international market, the price hovered around $27.11 per ounce.

Gold prices have gained close to 11 percent so far this year as it is seen as a safe investment amid geopolitical and economic uncertainty in the wake of escalating tensions triggered by the Israel-Hamas conflict and the Russia-Ukraine war.

Gold prices have now been scaling record highs over each of the last seven trading sessions. According to market experts, the latest surge came after US Fed Chairman Jerome Powell‘s speech on Wednesday that appeared to confirm the interest rate cut in the near term. Lower interest rates make investments in financial instruments less lucrative and this tends to trigger the switch to buying gold.

Governor Powell in his comments yesterday mentioned that the interest rates have peaked for this cycle, however, they will still watch the economic numbers and inflation trend before taking any decision.

Persistent geopolitical tensions in the Middle East and between Russia and Ukraine and a devastating earthquake in Taiwan spurred safe haven plays into bullion and other precious metals.

Anuj Gupta, Chief of Commodity and Currency at HDFC Securities, said, “Yesterday again, gold prices increased sharply by 1.26% and reached a new high of Rs.69,918 MCX June contract per 10 grams. Silver prices also rose by 2.56% and reached a new high of Rs.79,197 per kg in MCX May contract.”

Additionally, expectations of interest rate cuts being implemented from June 2024 are contributing to the bullish sentiment. As long as prices remain above 68,500 for the week, the outlook for gold remains positive.”

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