On Tuesday, as Middle East tensions increased and traders flocked to buy the safe-haven asset, gold hit yet another record high. Investor interest in gold was substantial even in the face of a stronger dollar and lowered expectations for U.S. interest rate decreases.
After hitting a record high of $2,276.89 at 10:40 a.m. EDT (1440 GMT), spot gold increased by 0.9% to $2,269.48 per ounce. US gold futures increased 1.5% to $2,290.40 in the meanwhile.
“Gold prices have been hitting a new all-time high practically on a daily basis. Today, it has made a new high off 2266.86. from its February low of 1984 it has rallied by more than USD 280 over 6-7 weeks. While we remain bullish on gold for the long term, we believe the current rally is over-stretched and gold may correct over the next 4-5 weeks before resuming its long-term bull run.”
Amit Goel, Co-Founder & Chief Global Strategist, Pace 360
The data released on Monday showed that U.S. manufacturing expanded in March for the first time in eighteen months, which caused the dollar to soar.
Consequently, traders lowered their projected interest rate drop in June to 58% from roughly 60% before the data announcement. In most cases, this would put downward pressure on bullion with no yield.
Due to muted trends in international markets, gold prices fell by ₹50 to ₹68,370 per 10 grams on Tuesday in the local market, as reported by HDFC Securities. The price of the expensive metal at the end of the latest trading session was ₹68,420 for 10 grams.
“Gold prices remained positive, experiencing a minor gap-up opening above 2250$ in Comex and above ₹68500 with a ₹150 gap-up in MCX. Dovish commentary from global banks spurred buying activity in gold, with expectations of interest rate cuts keeping prices firmly under bullish control. In the short term, the 68200-68000 range acts as a strong positive zone for Gold, while resistance is seen around 69000-69200.”
Jateen Trivedi, VP Research Analyst, LKP Securities
Palladium witnessed a 1.1% gain in price to $1,007.52, platinum saw a 2.8% increase to $927.60, and silver saw a 3% increase to $25.86 per ounce. In the meantime, silver saw a ₹430 increase on MCX, hitting ₹79,000 per kg. It has reached its previous session’s low of ₹78,570 per kilogram.
