The trajectory of gold prices continues to ascend, with rates in Calcutta inching ever closer to the significant milestone of Rs 70,000 per 10 grams. On Monday, the precious metal reached a notable high of Rs 69,450 in the city, representing a substantial uptick from the Rs 68,750 recorded just two days prior.
Similarly, in the nation’s capital, Delhi, gold prices witnessed a remarkable surge, skyrocketing by Rs 1,070 to achieve an unprecedented peak of Rs 68,420 per 10 grams. This surge in prices underscores the bullish sentiment prevailing in global markets and reflects investors’ growing appetite for safe-haven assets amidst economic uncertainty.
Internationally, Comex Gold prices soared to $2,286.40 per ounce on Monday, marking a significant increase from the opening price of $2,259.20 per ounce. This surge in global gold prices can be attributed to mounting speculation surrounding potential interest rate cuts by the US Federal Reserve, which has bolstered investor confidence in the precious metal.
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According to Dilip Parmar, a research analyst at HDFC Securities, robust demand from China has further fueled the upward trajectory of gold prices, adding to the metal’s allure as a hedge against economic volatility.
In the futures market on the Multi Commodity Exchange (MCX), the June contract of gold surged to Rs 68,926 per 10 grams on Monday before experiencing a minor correction to Rs 68,200 later in the day. This volatility in futures trading reflects the heightened market activity and investor sentiment surrounding gold.
Pranav Mer, vice-president of EBG-commodity & currency research at JM Financial Services Ltd, noted that gold’s ascent to record highs is underpinned by a combination of factors, including better-than-expected US growth data and concerns regarding persistent inflation levels. These factors have cast doubts on the likelihood of a rate cut by the Federal Reserve at its upcoming June meeting, further boosting the appeal of gold as a safe-haven asset.
The World Gold Council, in a report released on Monday, underscored the enduring value of gold as a hedge against inflation. Since the collapse of the US gold standard in 1971, gold has consistently outperformed major currencies and commodities, cementing its status as a reliable store of value and a cornerstone of investment portfolios worldwide.
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