Gold prices in the national capital of New Delhi rose by Rs 200 to Rs 63,100 per 10 grams on Monday, driven by strong global cues, as reported by HDFC Securities. This increase comes after the previous trade saw the precious metal settle at Rs 62,900 per 10 grams, representing a significant jump. Similarly, silver prices also saw a rise, increasing by Rs 200 to Rs 76,400 per kg.
Dilip Parmar, a research analyst at HDFC Securities, noted that spot gold prices in Delhi were up by Rs 200, reaching Rs 63,100 per 10 grams, in response to the stronger overseas gold prices. In the international market, spot gold at Comex was trading at USD 2,031 per ounce, up by USD 13 from the previous close. It was observed that gold prices increased after mixed US economic data pushed the dollar slightly lower while the risk sentiment remained firm. Meanwhile, silver was trading marginally higher at USD 22.99 per ounce in the global markets.
Traders are now speculating that gold may appreciate in the near future, citing geopolitical concerns in the Middle East and the possibility of the US Federal Reserve delaying the monetary policy interest rate cut. These factors, along with the strong global cues and increased demand, could further drive gold prices up in the coming weeks.
Insight:
The rise in gold prices is also due to the weakening dollar, which tends to make gold more attractive to investors as an alternative investment. Additionally, the impact of geopolitical tensions and market volatility on gold prices is a long-standing trend, as investors flock to the safe-haven asset in times of uncertainty. As the world continues to navigate through the ongoing economic recovery and potential policy changes, gold prices are likely to remain sensitive to shifts in global market dynamics.
