New Delhi: Gold prices surged in India by Rs.580 per 10 grams and silver rose by Rs.500 per kg due to increasing investor interest. On the Multi Commodity Exchange (MCX), gold futures increased by Rs. 918, marking a noticeable upward trend in the precious metals market.
“Gold prices edge higher, but remain under pressure, as softer US PPI and CPI data for April indicate disinflation.
At the same time, the US Treasury yield is approaching 4.5 per cent, extending Friday’s rebound after rating agency Moody’s downgraded the US credit rating from AAA to AA-I,” Chintan Mehta, CEO at NBFC Abans Financial Services, said.
However, analysts have cautioned that this upward trend may hold in the near term, but the prices could undergo a phase of volatility. Reasons could include the unresolved conflicts in the Gulf and a slowing Chinese economy.
While gold and silver remain safe-haven assets, timing and allocation will be key as global markets continue to react to central bank policies and geopolitical developments.
“Moody’s decision to lower the US credit profile by one notch could dampen sentiments for the time being around risky assets, providing a fillip to safe-haven assets like gold. Buying may emerge from lower levels and spill over to MCX Gold as well. That, coupled with domestic buying ahead of the upcoming wedding season in India, will ensure that the downside is capped and prices remain at elevated levels,” said Aksha Kamboj, Vice President, India Bullion and Jewellers Association (IBJA) and Executive Chairperson, Aspect Global Ventures.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. The views mentioned here do not reflect the publication’s views.
