Gold Prices Soar with Increased Jeweller Buying
Gold prices in India surged by Rs 400 to reach Rs 75,050 per 10 grams, driven by increased buying from jewellers. This spike in prices is due to rising domestic demand and expectations of weak inflation numbers in the US.
New Delhi, Jul 10 (PTI) – Gold price on Wednesday jumped by Rs 400 to Rs 75,050 per 10 grams in the national capital on the back of fresh buying from jewellers, according to the All India Sarafa Association. The precious metal had closed at Rs 74,650 per 10 grams in the previous session.
Silver Remains Stable
On the other hand, silver prices remained steady at Rs 94,400 per kg. In sarafa markets, gold was trading at Rs 75,050 per 10 grams, marking a Rs 400 increase against the previous close, as reported by the association.
Insight: The stability in silver prices amidst the surge in gold prices indicates a specific pattern of demand for precious metals among consumers. Consumers may prefer gold as a safe-haven asset during uncertain economic times, such as the current global economic situation.
Factors Driving Gold Prices
Traders attributed the uptrend in gold prices to the rise in domestic demand. Additionally, the international spot gold market was trading higher at USD 2,380.50 per ounce, indicating a positive trend driven by expectations of weak US inflation numbers.
Insight: The anticipation of rate cuts by the US Federal Reserve based on the upcoming US inflation data suggests that investors are closely monitoring global economic indicators to position themselves accordingly in the precious metals market.
Expert Perspectives on Market Trends
According to Jateen Trivedi, VP Research Analyst at LKP Securities, the buying in gold was bolstered by expectations of weak inflation numbers in the US, potentially leading to rate cuts by the US Federal Reserve in the September meeting. On the other hand, Praveen Singh, Associate VP at Sharekhan by BNP Paribas, noted that spot gold closed with a gain of around 0.20 per cent, following comments from Fed Chair Powell indicating a balanced view on the US economy and monetary policy.
Insight: Expert insights highlight the intricate relationship between economic indicators, central bank policies, and market reactions, emphasizing the need for investors to stay informed and agile in response to changing market dynamics.
Looking Ahead
As traders await the release of the US Consumer Price Index data in June, scheduled for Thursday, the market will closely watch for potential implications on the likelihood of rate cuts in the upcoming Federal Reserve meeting in September.
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Insight: The upcoming US Consumer Price Index data release and its impact on potential rate cuts reflect the interconnectedness of global economic factors and the significance of fundamental economic data in shaping market expectations and trends.
