June 21, 2024
New Delhi, India
Gold Prices
Gold prices have risen, surpassing ₹72,800 per 10 grams, driven by safe-haven demand and expectations of potential interest rate cuts by global central banks, particularly the US Federal Reserve. The recent economic data from the US has indicated a slowdown, bolstering the outlook for gold as a stable investment.
Key Highlights
- Domestic Market Performance:
- MCX Gold: Traded 0.18% higher at ₹72,715 per 10 grams.
- MCX Silver: Down 0.51% at ₹91,100 per kg.
- International Market Performance:
- Spot Gold: Increased 0.1% to $2,362.60 per ounce after reaching a two-week high.
- US Gold Futures: Rose 0.3% to $2,376.50.
- Spot Silver: Fell 0.3% to $30.61 per ounce.
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Factors Influencing Gold Prices
- Safe-Haven Demand:
- Rising geopolitical tensions in the Middle East have increased the demand for gold as a safe-haven asset, driving prices higher.
- Economic Slowdown:
- Recent US economic data indicating a slowdown has supported gold prices as investors seek stability amid uncertainty.
- Interest Rate Expectations:
- Growing speculation that the US Federal Reserve may cut interest rates later this year is supporting gold prices. Lower interest rates reduce the opportunity cost of holding non-yielding assets like gold.
Weekly Performance
- Gold has gained over 1% so far this week, adding to a 1.7% increase from the previous week.
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Bottom Line
The combination of safe-haven demand, economic slowdown signals, and expectations of interest rate cuts continues to support gold prices. Investors are closely watching central bank moves and geopolitical developments, which will play crucial roles in determining the future trajectory of gold prices.
Disclaimer:
CurrencyVeda provides this news article for informational purposes only. We do not offer investment advice or recommendations. Before making any investment decisions, please conduct thorough research, consult with financial experts, and carefully consider your financial situation, risk tolerance, and investment goals. Investing in the stock market carries risks, and it’s essential to make informed choices based on your individual circumstances. CurrencyVeda is not liable for any actions taken based on the information provided in this article.
