Gold Prices Soar in Delhi
Gold prices in Delhi skyrocketed by Rs 530 to reach Rs 73,080 per 10 grams on July 4, driven by strong global cues. This increase was in line with the bullish trend witnessed in international markets, according to HDFC Securities. The previous trading session saw gold settling at Rs 72,550 per 10 grams.
Silver prices also witnessed a significant jump, surging by Rs 1,200 to reach Rs 92,500 per kg, compared to the previous close of Rs 91,300 per kg.
Impact of Global Markets
Saumil Gandhi, a Research Analyst at HDFC Securities, highlighted that spot gold prices in Delhi were trading at Rs 73,080 per 10 grams, reflecting an increase of Rs 530 from the previous close. In the global market scenario, Comex reported spot gold trading at USD 2,355 per ounce, indicating a USD 16 rise from the previous day. Furthermore, silver prices were quoted at USD 30.25 per ounce, showing an increase from USD 29.80 per ounce in the earlier session.
Insight into Market Movements
Manav Modi, a Senior Analyst at Motilal Oswal Financial Services Ltd, explained that the surge in gold prices by more than 1% to a two-week high was a result of weak US economic data, which raised expectations of a rate cut by the Federal Reserve. Additionally, factors such as a decline in the dollar index and a rally in industrial metals contributed to the uptrend in silver prices.
Future Expectations and Market Analysis
With Federal Reserve Governor Powell emphasizing existing inflation concerns and reaffirming a cautious approach towards raising interest rates, the market anticipates a potential rate cut in September. Market analysts suggest that the Federal Reserve is currently adopting a wait-and-watch stance as it awaits further data before making decisions on interest rate adjustments.
Focus on US Economic Data
As the US market remained closed on Thursday for the Independence Day holiday, attention is now directed towards the nonfarm payrolls report scheduled for Friday. Analysts believe that this report will offer more clarity on the possibility of US rate cuts in the near future.
Anticipated Gold Market Trends
Prathamesh Mallya, DVP- Research at Angel One, expects gold to remain strong amid growing speculations of a Federal Reserve interest rate cut in September. This sentiment is reinforced by indications of a softening US labor market and overall economic slowdown.
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