Gold prices have been experiencing a significant surge across the globe, with the yellow metal hitting its peak in India at ₹65,298 per 10 grams on the MCX in the first week of March 2024. This spike, amounting to over ₹2,700, has been attributed to speculations of an interest rate cut by the US Federal Reserve in June.
The anticipation surrounding the potential rate cut by the US Federal Reserve has had a major impact on both domestic and international markets, driving up gold prices in the country. Meanwhile, international gold prices saw a slight decline of 0.25 percent in February, ending the month at $2032.8 per ounce, while domestic prices closed 0.67% lower before the significant uptrend in March.
While gold prices have been on the rise, MCX Silver rates saw a drop last week, trading at ₹74,015 per kg with a decrease of ₹123 or 0.17 percent. Despite this short-term setback for silver, experts predict a significant rise of almost ₹2,859 or 4.01% in March.
The surge in gold prices can be attributed to the decline in the dollar index (DXY) and the expected interest rate cut by the US Federal Reserve. Additionally, central banks’ acquisitions of gold in 2023 slightly fell short of the record set in 2022, indicating a strong demand for the precious metal.
Looking ahead, experts predict that the upward trend in gold prices is likely to continue throughout the month, driven by geopolitical tensions and uncertainty on the macroeconomic front. The US monetary policy is expected to play a crucial role in influencing gold prices in the coming weeks.
