Gold Hits Historic High, Surges Rs 450 To Reach Rs 64,300/10g On Global Trends
Gold prices surged by Rs 450 on Monday, reaching an unprecedented record high of Rs 64,300 per 10 grams in the national capital, driven by robust global trends. The precious metal had settled at Rs 63,850 per 10 grams in the previous trade, marking a substantial increase. In contrast, silver remained stable at Rs 80,200 per kilogram.
The surge in gold prices can be attributed to a combination of factors influencing the precious metals market. Internationally, gold prices have been on an upward trajectory, reflecting a strong global sentiment towards safe-haven assets amid economic uncertainties.
Prithviraj Kothari, Managing Director of RiddiSiddhi Bullions (RSBL), commented on the surge, stating, “Gold prices touched a high of Rs 64000/ 10 gm yesterday on high speculative demand, the reemerging of geopolitical tensions in the Middle East and the gradual change in Fed's monetary stance from hawkish to dovish. Gold prices have rallied 15 per cent from Rs 56500 to Rs 64000 in the last two months and the main trigger is geopolitical tensions between Israel and Hamas-led Palestinians. Investors should be cautious now as we can see at least a 50 per cent retracement in the prices as December is seasonally considered to be a profit-booking month for various asset classes.”
Sanjeev Agrawal, President of PHD Chamber of Commerce and Industry said, “Gold has been in a multi-year bull market since the last 15 years. Many factors are supporting the prices of gold. The recent geo-political developments; war between Russia-Ukraine and the more recent Israel-Gaza conflict have triggered the prices once again. The inflation trajectory in the US is softening and giving a great room to pause the FED rate, which has happened during the last two FED meetings. Softening of inflation and pause in the policy rates hikes is significantly boosting the sentiment of the yellow metal to make new highs. The current geo-political development and macroeconomic fundamentals are significantly favourable for higher gold prices.”
Anuj Arora, Co-founder & COO, SahiBandhu said that the national capital experienced this historic high, reflecting strong worldwide trends. International sources indicated gold trading at USD 2,077 per ounce. “Concurrently, COMEX spot gold traded at USD 2,077 per ounce, up by USD 6 from its prior close. Furthermore, COMEX gold achieved a record peak on Monday, reaching USD 2,146 per ounce during Asian trading hours, attributed to heightened geopolitical tensions in the Middle East. This surge underscores the intricate interplay of global factors impacting the precious metal's value. SahiBandhu Gold Loan, the largest gold loan aggregator platform, foresees a significant increase in the demand for loans against gold due to the ongoing rise in the per-gram gold rate.”
“In India, gold has consistently earned the trust of buyers and remained resilient during crises, such as the pandemic,” said Mangesh Chauhan, MD and CFO of Sky Gold. Chauhan added, “During this period, India's gold jewellery purchases surpassed those in America, Europe, and the Middle East combined. The widespread appeal of the yellow metal, coupled with the current bullish momentum, presents a favourable opportunity to stay invested in gold as a long-term strategy. Anticipating a 25 to 30 per cent return in the next two years is reasonable under these circumstances.”
Deveya Gaglani, Research Analyst - Commodities, Axis Securities said that Gold prices have been on a roll for the past few weeks and rallied by almost 3 per cent in the domestic market last week. “This week, prices made a new lifetime of Rs 64000 as the market was optimistic about a rate cut by the Fed sooner than expected. This development led to a correction in the Dollar index last week, which supported Bullion prices. The dollar index and Gold prices are inversely correlated with each other. However, Gold prices failed to sustain near the record high as they pared the gains and closed lower by almost 2 per cent in the last session as traders trimmed the bets of a rate cut by the US Federal Reserve in early 2024. Spot gold slipped 2.1 per cent to USD 2,026.69 per ounce. Prices recovered in today's session and are quoting around the 62700 level. As long as the USD 2020 level is intact on the downside, we expect Gold prices to trade with a positive bias this week.”
Commenting on the prices, Aashika Jain, India Editor and Financial Expert, Forbes Advisor said, “Gold prices hitting an all-time high per 10 grams should come as no surprise given the robust hedge gold offers against inflation. Gold has been a must-have asset choice for investors to have a balanced portfolio. The timing of this surge is interesting with the U.S. economy showing signs of inflation moderating. This global cue is significant, and its combination with the weakness in the Indian rupee amid a busy wedding season home may have contributed to the rise in gold prices. The momentum in gold is likely to continue.”
Narinder Wadhwa, National President, CPAI said that the record-breaking surge in gold prices is not merely a result of market fluctuations but is intricately tied to a complex interplay of global and domestic factors. “Central banks worldwide have engaged in significant gold purchases, creating a surge in demand that has reverberated through the market. Simultaneously, within domestic markets, the confluence of festive and wedding seasons has driven a healthy demand for gold, further contributing to the remarkable price hike.”
Wadhwa added, “In the backdrop of conflicts and geopolitical unrest, gold's intrinsic value as a tangible asset with a limited supply gains prominence. Investors, wary of the volatility in traditional markets during wartime, often flock to gold, driving its prices to unprecedented heights. This dual narrative, where gold is not only propelled by central bank activities and domestic celebrations but also by global uncertainties, further underscores its multifaceted role in times of economic and geopolitical turbulence."
Amit Khare, Associate Vice President at GCL Broking opined on the rise, “Surge in gold prices to a new record high of Rs 64,063 per 10 grams reflects the robust global trends and a bullish momentum in overseas markets, amidst economic uncertainties, gold continues to serve as a safe-haven asset, drawing increased investor attention. The rise of Rs 450 in a single day underscores the metal's resilience and attractiveness in the current financial climate. While gold showcases strength, silver maintains stability at Rs 76,100 per kilogram on MCX. Internationally, gold trades at USD 2,040 per ounce, emphasising the precious metal's global significance. As markets navigate uncertainties, investors must stay vigilant and well-informed.”
Growth Advisor Manish Mishra said in the international arena, gold was trading at USD 2,077 per ounce, while silver slightly dipped to USD 25.40 per ounce. Notably, Comex gold, a significant player in the global market, reached a new all-time high of USD 2,146 per ounce in Asian trading hours, driven by escalating geopolitical tensions in the Middle East. The surge in gold prices continued on Tuesday, reaching Rs 61,300 per 10 grams in Delhi, up by Rs 450, amidst a global uptrend. Meanwhile, silver witnessed a marginal decline to Rs 77,400 per kg. In the international market, gold was trading higher at USD 2,024 per ounce, and silver dipped slightly to USD 25.45 per ounce.
Aamir Makda, Commodity & Currency Analyst at Choice International commented on this trend, and said, "The crucial support level would be the 20-day moving average (DMA) at 61556, and if the market can hold this level, we may expect continued upside momentum in the Gold price. The resistance level would be 63250 - 63700. Investors are looking forward to the release of the US non-farm payrolls data on Friday, which could provide additional insight."
