The yellow metal is not shedding its shine due to an expected turbulence of the dollar and the likelihood of the Fed cutting rates.
The gold market continued to shine as the six-year low of gold prices in India was followed by an escalation mirroring the global trend observed on Monday. The yellow precious-metal with its sliver-and-bronze-colored essence has surged with the weakening position of the US dollar index and higher-than-anticipated interest rate cut by the Federal Reserve.
The dollar index, used as a measure of dollar’s power compared to the six strongest currencies on the market, is changing but has gained a lot of interest for investors because of its recent downtrend.
At High noon for the futures of gold with maturity date for 5th of April, the price was Rs 63,478 for 10 grams, representing a marginal drop of 0.13 percent in the futures trading. Nevertheless, the price of silver went down by 0.32%, while Rs 72,050 was the prevailing price per kg.
Referring to GoodReturns.com, the overall rate per 10 gm unit of 24 carat pure gold at 6:00 am Monday hour was deduced by Rs 10, which became Rs 64.080.
On the global market, gold has spiked again; these are the highest levels since at least in the previous four weeks. The push is mostly associated with sluggish numbers in the US economy, which alone represents an isolated case that created a potential expectation for an interest rate cut in June.
Spot gold edged 0.1 percent lower to $2,081.11 per ounce as of 04:$1668.23/ounce at 8:01 am GMT. Yesterday it touched a monthly high of $2088.19, a level not seen since December 28, Friday. The same scenario with US gold futures also looked pale, dropping 0.3 percent to $2,090.00.
Edward Meir, an analyst at Marex, attributed gold’s ascent to the growing narrative surrounding the Fed’s potential rate decrease, stating, “The key drivers for gold is what’s going to happen on the interest rate front – and we saw a move higher in gold on Friday because a series of macro releases out of the US moved the narrative towards the Fed possibly decreasing rates sooner than expected.” Gold prices had surged by around $50 last week.
While spot platinum fell 0.7 percent to $884.35 per ounce, and palladium rose 0.1 percent to $956.53, both metals have suffered a more than 10 percent decline this year. Spot silver followed suit, dropping 0.4 percent to $23.
As investors navigate the intricate dance of global markets, the allure of gold as a safe-haven asset continues to captivate, driven by economic uncertainties and the evolving monetary policy landscape.
