Gold hits record high of ₹78,250, silver shoots to 12-year high of ₹94,000/kg over US Fed rate cut momentum | Stock Market News
Source: Live Mint
Gold prices went up by ₹400 per 10 grams on Thursday in Delhi. The prices rose due to sustained buying by jewellers and strong global markets trends, reported PTI. Gold rose to a lifetime of ₹78,250 per 10 grams.
“Maintaining its record-breaking run for the second day, gold spurted by ₹400 to a fresh lifetime high of Rs78,250 per 10 grams,” PTI reported citing the All India Sarafa Association. Gold had closed at ₹77,850 per 10 grams on Wednesday.
“The eased monetary policy of major Western central bankers and growing concerns about the escalating Middle East war have driven the recent uptrend in gold,” PTI stated quoting Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities.
US Fed rate cut boost precious metals
On September 18, the US Federal Reserve slashed the benchmark interest rate by 50 basis points (bps) or half a percentage point to 4.75 per cent to 5 per cent for the first time in four years. Silver rose by ₹1,000 to ₹94,000 per kg, reported PTI. The metal had hit ₹93,000 per kg previously.
Silver rose to its highest level in nearly 12 years, reported Reuters. “Silver is going to continue to rally over the coming quarters because of the consecutive rate cuts and as China’s stimulus could continue for some time,” a Reuters report said quoting Amelia Xiao Fu, head of commodity markets at BOCI.
One of the primary catalysts for the rally in silver has been gold because of their strong correlation, the report said quoting Aneeka Gupta, director of macroeconomic research at WisdomTree.
The bulk of the remaining demand for silver has been driven by the industrial sector, as it is used in photovoltaic products like solar panels nearly doubled over the prior year, Gupta said.
The gold contracts in the futures trade increased by ₹162 or 0.22 per cent to trade at ₹75,475 per 10 grams on the Multi Commodity Exchange (MCX) for October delivery, PTI reported.
Silver contracts rose to ₹1,034 or 1.12 per cent to ₹93,079 per kilogram on the bourse for December delivery. The COMEX gold surged by 0.61 per cent at $2,701.20 per ounce in the international markets, it added.
Other metals such as platinum surged by 2.6 per cent at $1,013.75 and palladium rose by 2 per cent at $1,058.75.
