Gold continues its historic run, price surges to record high
Gold prices opened on the Multi Commodity Exchange (MCX) on Monday at Rs 68,699 per 10 grams. In the international market, prices hovered around $2,196.32 per ounce. Meanwhile, silver opened at Rs 75,223 per kg on the MCX. In the international market, the price hovered around $24.69 per ounce.
Manav Modi, Analyst, Commodity and Currency, MOFSL, said, “Gold price continues on its historic run, marking all-time highs on both Comex and on the domestic front. It was a holiday-shortened week with heightened volatility. Market participants continued to discount rate cuts in the June Fed meeting, as the dot plot released in the March policy meeting showed the possibility of three rate cuts this year.”
On the data front, the US GDP was reported slightly above expectations at 3.4% v/s 3.2%. While US inflation rose to 2.5% YoY, according to the Fed’s benchmark index, the core inflation was slightly lower than the expectations supporting metals.
US Federal Reserve Chair Jerome Powell, in his recent comments, said that the central bank is data-dependent and is not eager to make any decisions. He also mentioned that inflation data is along the lines of what we would like to see.
“Israel strike killed 77 Palestinians in Gaza in the past 24 hours; updates regarding geopolitical tensions continue to support prices. Focus this week will be on Manufacturing and Services PMI from major economies. RBI interest rate decision, OPEC meeting, US Factory orders and jobs market data will also be in sight,” said Modi.
Additionally, Ravindra Rao, Head Commodity Research, Kotak Securities, said, “COMEX Gold prices surged to a record high of $2256.9 per troy ounce during the previous week, amid prospects of Fed rate cuts coupled with heightened geo-political tensions aiding safe haven bids. The odds of a June rate cut have risen to 65.9% compared with near 50% a month ago, according to CME Fedwatch tool. For the week, US ISM PMIs, speeches from Fed officials and Jobs data will be in spotlight and shed more light on Fed’s policy path.”
Source: https://www.businesstoday.in/