Gold Price Jumps Rs 400 to Rs 75,050 Per 10 Grams in India
In a significant development in the Indian markets, the price of gold experienced a notable increase, surging by Rs 400 to reach Rs 75,050 per 10 grams. This rise in gold prices is attributed to enhanced purchasing by jewellers, reflecting a spur in domestic demand for the precious metal.
According to the All India Sarafa Association, the price of gold in the national capital witnessed this uptick on Wednesday, marking a distinct rise from its previous close of Rs 74,650 per 10 grams. While gold prices saw a jump, silver, on the other hand, maintained its stability with prices remaining flat at Rs 94,400 per kg in the sarafa markets.
Market participants have pointed out that the upward trajectory in gold prices is largely influenced by an increase in domestic demand. Furthermore, the anticipation of weak inflation numbers in the United States has also played a crucial role in shaping market sentiments. This anticipation is tied to the expectations that the US Federal Reserve might opt for rate cuts in its upcoming September meeting, a move that could further influence gold prices globally.
Internationally, gold has been performing well too. Spot gold was trading higher at USD 2,380.50 per ounce, up by USD 12.60 per ounce. This positive trend in gold prices is mirrored by expectations surrounding the US inflation data, slated for release, which could potentially prompt rate adjustments by the US Federal Reserve.
In terms of Silver, the global markets also saw a slight increase, with prices going up to USD 31.25 per ounce. This is reflective of the positive momentum that precious metals are experiencing in both domestic and international spheres.
Commentary from market experts sheds light on the factors influencing these movements. Jateen Trivedi, VP Research Analyst, Commodity, and Currency at LKP Securities, highlighted that the buying momentum is largely driven by expectations of favorable inflation figures from the US, which could lead to monetary policy adjustments by the Federal Reserve. Additionally, insights from Praveen Singh, Associate VP at Sharekhan by BNP Paribas, brought attention to the testimony by Fed Chair Powell to the US Senate Banking Committee, which offered a balanced perspective on the US economy and monetary policy moving forward.
Fed Chair Powell acknowledged the encouraging trend in inflation but emphasized the need for more data to confidently proceed with rate cuts. His testimony underscored the delicate balance the US central bank needs to maintain to safeguard the economy and the labor market from the risks associated with inflation and other economic challenges.
The upcoming release of the US Consumer Price Index (June) data is being closely watched by traders and market analysts alike. This data is crucial as it could influence the possibility of rate cuts in the US in September, thereby potentially impacting global gold and silver markets.
The recent movements in the prices of gold and silver highlight the interconnected nature of global financial markets and the significant impact of monetary policy expectations on commodity prices. As the markets await more data, the trends in precious metal prices remain a key area of focus for investors and analysts.
