Gold Prices Hit Record High: What’s Driving the Surge?
Gold prices soared on Tuesday, reaching a new pinnacle of Rs 65,000 per 10 grams in the national capital, marking an increase of Rs 800 from the previous close, according to HDFC Securities. Silver also saw a substantial rally, rising by Rs 900 to reach Rs 74,900 per kilogram.
Key Factors Driving the Surge
Several factors have contributed to this surge in gold prices:
| Factor | Impact |
|---|---|
| Global Trends | Strong global trends have buoyed gold prices, with spot gold hitting a new all-time high of Rs 65,000 per 10 grams. |
| Speculation on US Federal Reserve Actions | Growing speculation regarding a potential interest rate cut by the US Federal Reserve in June has boosted gold prices. |
| Economic Indicators | Signs of slowing industrial and construction spending in the US, along with a decrease in inflationary pressures, have contributed to the uptick in gold prices. |
| Geopolitical Tensions | Heightened geopolitical tensions have increased the attractiveness of gold as a safe-haven asset, reducing short-selling activities. |
Expert Analysis
Industry experts have offered insights into the current market dynamics:
- Saumil Gandhi, Senior Analyst at HDFC Securities: “Spot gold prices in Delhi are trading at Rs 65,000 per 10 grams, up by Rs 800, driven by bullish cues from overseas markets.”
- Jateen Trivedi, VP Research Analyst at LKP Securities: “Speculation regarding a US Federal Reserve interest rate cut has propelled gold prices, with a gain of over Rs 2,400 seen in MCX in the last three days.”
- Pranav Mer, VP of Research at BlinkX and JM Financial: “Despite a steady dollar and uncertainty over US Fed policies, gold and silver prices continue to trade positively, reflecting investor preference for safer assets.”
Conclusion
The surge in gold prices to a record high underscores the influence of global economic factors, speculation on central bank policies, and geopolitical tensions. Investors are closely monitoring these developments as they navigate market volatility and seek refuge in precious metals amid uncertain times.
(This story has not been edited by Financemonk staff and is published from a syndicated news agency feed – PTI)