New Delhi witnessed a remarkable surge in gold prices, reaching an unprecedented high of INR 65,000 per 10 grams. This surge, reflective of strong global market trends, is fueled by a combination of international factors and heightened expectations around the U.S. Federal Reserve’s upcoming interest rate decisions.
Key Highlights:
Record Price Levels: Gold prices experienced a significant rally, leaping by INR 800 to achieve an all-time high of INR 65,000 per 10 grams.
Silver’s Upward Trend: In tandem with gold, silver prices also saw a substantial increase, rising by INR 900 to touch INR 74,900 per kilogram.
Global Influence:
The surge in gold prices aligns with global trends, where a stable U.S. dollar and potential interest rate cuts by the U.S. Federal Reserve have strengthened investor sentiment towards precious metals.
Market Speculations:
Anticipation of a 71% rate cut by the Federal Reserve in June further contributes to the upward trajectory of gold prices.
Future Projections:
Experts from HDFC Securities project that gold prices may continue to climb, with potential levels reaching INR 67,000 by the end of the year.
Market Dynamics:
The bullish trend in gold prices is influenced by speculation surrounding potential interest rate cuts by the U.S. Federal Reserve and indications of reduced industrial and construction spending in the U.S., signaling a decline in inflation rates. These factors collectively contribute to heightened investor interest in gold as a safe-haven asset.
Investment Caution:
Market experts advise caution among investors, particularly with the upcoming statements from Fed Chairman Powell, which could introduce market volatility. Investors are urged to avoid excessive risks during this period to mitigate potential market instabilities.
