In a striking market movement, gold prices soared to a new all-time high of INR 65,000 per 10 grams in New Delhi, reflecting strong global market trends. This surge is attributed to a mix of international market strengths and anticipations around the U.S. Federal Reserve’s interest rate decisions.
Key Highlights:
- Record Price Levels: The gold market witnessed an impressive rally, with prices jumping by INR 800 to hit the record mark of INR 65,000 per 10 grams.
- Silver’s Upward Trend: Alongside gold, silver prices also experienced a significant rise, escalating by INR 900 to reach INR 74,900 per kilogram.
- Global Influence: The price hike is in line with global trends, where a stable U.S. dollar and potential interest rate cuts by the U.S. Federal Reserve have bolstered investor sentiment towards precious metals.
- Market Speculations: There’s a 71% expectation of a rate cut by the Federal Reserve in June, which could further influence gold prices.
- Future Projections: Experts from HDFC Securities suggest that gold prices could climb even higher, potentially reaching INR 67,000 by year-end.
Market Dynamics:
The bullish trend in gold prices is partly driven by speculation over the U.S. Federal Reserve’s potential interest rate cuts and signs of reduced industrial and construction spending in the U.S., hinting at a decreasing inflation rate. These factors have collectively enhanced investor interest in gold as a safe-haven asset.
Investment Caution:
Market experts are advising investors to remain cautious, especially in light of upcoming statements from Fed Chairman Powell, which may introduce market volatility. Investors are recommended to avoid taking on excessive risk during this period to mitigate potential market instabilities.