New Delhi, Apr 8 (PTI) Gold and silver prices hit their highest levels on the MCX on Monday, tracking bullish trend in the international market amid rising geopolitical tensions in the Middle East.
Gold prices shot up by Rs 637 to touch its all-time high of Rs 71,080 per 10 grams, while silver rates surged Rs 1,381 to scale a new peak of Rs 82,109 per kg.
In the futures trade on the Multi Commodity Exchange (MCX), gold contracts for June delivery was trading higher by Rs 16 or 0.02 per cent at Rs 70,652 per 10 grams.
Meanwhile, silver contracts for May delivery were quoting higher by Rs 835 to Rs 81,698 per kg on the bourse.
“Gold prices continued their upward trajectory… to reach Rs 70,900, supported by a surge in global Comex prices, which touched USD USD 2,350 per ounce in the early morning hours,” Jateen Trivedi, VP Research Analyst at LKP Securities, said.
According to analysts, the rally in the yellow metal remains unabated even though US Treasury yields increased after the robust March payroll data from the US, which shifted the expectations for the Federal Reserve pivot to rate cuts in the second half of this year.
In the overseas markets, gold futures reached a lifetime high at USD 2,372.50 per ounce, while silver futures climbed to a three-year high of USD 28.19 per ounce during the day.
“The ongoing buying of gold by global central banks has provided significant support to prices, along with sustained geopolitical tensions and the anticipation of imminent interest rate reversals.
“While the overall price outlook remains bullish, some correction may be expected towards Rs 69,500 during the course of this week,” Trivedi said.
Praveen Singh – Associate VP, Fundamental Currencies and Commodities at Sharekhan by BNP Paribas, said, the US payroll data was quite encouraging and was driven mostly by part-time jobs.
“Part of the gains in gold may be attributed to escalating Middle East tensions on possibility of a direct war between Israel and Iran, though nothing major has happened on that front,” Singh said. PTI HG HVA
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