Gold and Silver Rate Surge Amid Rate Cut Speculation and Geopolitical Uncertainty

Tanushree Jaiswal Tanushree Jaiswal 12th April 2024 - 12:55 pm
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Today, Gold Rate surged to unprecedented levels in both domestic & international markets, with Comex gold soaring to new lifetime high of $2,412 per troy ounce, & spot gold hitting $2,395 per ounce during early trading. Additionally, silver prices reached new peak on Multi Commodity Exchange (MCX), with MCX gold price hitting record ₹72,718 per 10 grams & MCX Silver Rate touching ₹84,238 per kilogram within minutes of market opening.

Experts attribute this surge in Gold & Silver Prices to anticipation of US Federal Reserve rate cut following release of robust US Consumer Price Index (CPI) data. Initially expected in June 2024, rate cut speculation heightened after release of strong inflation figures, prompting expectations for announcement during upcoming Fed meeting scheduled from April 30 to May 1, 2024.

Furthermore, geopolitical tensions & mixed inflation data have also influenced investor sentiment, leading to upward trajectory in gold & silver prices. Despite elevated dollar & US benchmark treasury yields, gold futures rose to fresh record high in early Asian trading, surpassing $2400 per troy ounce levels.

You can check also Gold Futures 5-Jun-2024 and 5-Aug-2024

Veterans in commodity market foresee further upside potential in gold & silver prices for 2024, citing geopolitical uncertainties & proposed rate cuts by US central bank as key factors driving market dynamics. Although short-term profit booking may occur, overall outlook remains optimistic, with geopolitical events & monetary policies likely to keep gold & silver prices well supported.

Key levels and Conclusion

Key levels to monitor include Gold Rate today for 24k is ₹73,310 per 10 grams, Gold Rate today for 22k is ₹67,200 per 10 grams & Silver Rate Today ₹86,500 per kilogram, with potential breakout points at Gold rate 224k at ₹72,220 & Silver Price ₹85,500, respectively. Experts predict that gold prices may reach ₹73,500 & ₹75,000 per 10 grams in short to medium term.

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Disclaimer: Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.

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