August 19, 2024
New Delhi, India
Gold Prices Today
Gold prices continued their upward trajectory on Monday, fueled by growing speculation of a potential US Federal Reserve rate cut. On the Multi Commodity Exchange (MCX), gold opened with an upside gap at ₹71,458 per 10 grams and quickly climbed to an intraday high of ₹71,644, marking a four-week high. In the international market, gold prices are hovering above the $2,500 per ounce mark, nearing a lifetime high of $2,507 per ounce. Similarly, silver prices also saw a significant rise, hitting a three-week high.
Gold Price Movement:
- Domestic Market: Gold prices on the MCX opened strong, reflecting a bullish sentiment among traders. The precious metal touched a four-week high, driven by a combination of dovish Fed expectations and ongoing geopolitical tensions.
- International Market: In the global market, gold prices are sustaining above the $2,500 per ounce mark, with traders closely monitoring upcoming economic data and Fed signals. Despite some profit-taking, the overall sentiment remains positive, with gold prices oscillating around their lifetime highs.
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Silver Price Movement:
- Domestic Market: The MCX silver rate today opened at ₹83,750 per kg and reached an intraday high of ₹84,069 per kg, marking a three-week high. The rise in silver prices is in tandem with the bullish trend in gold, supported by the weaker US Dollar and expectations of a Fed rate cut.
- International Market: Silver prices in the international market are currently above $29 per ounce, with an immediate target of $30 per ounce in sight. The strong demand for silver, coupled with the weaker dollar, has kept prices elevated.
Market Drivers:
- Fed Rate Cut Expectations: The buzz around a potential rate cut by the US Federal Reserve has been a key driver of the recent rally in gold and silver prices. The US Producer Price Index (PPI) and Consumer Price Index (CPI) data released last week indicated a downward trend in inflation, reinforcing the possibility of a 25-basis-point rate cut in September.
- Geopolitical Tensions: Escalating geopolitical tensions, particularly in the Middle East and the ongoing Russia-Ukraine conflict, are also contributing to the demand for safe-haven assets like gold and silver. These factors are likely to keep prices supported in the near term.
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Upcoming Events:
- FOMC Minutes and Powell’s Speech: Investors are eagerly awaiting the release of the FOMC meeting minutes on Wednesday and Fed Chair Jerome Powell’s speech at the Jackson Hole Symposium on Friday. These events are expected to provide further clarity on the Fed’s monetary policy path and could impact the direction of gold and silver prices.
Gold and silver prices are riding a wave of bullish sentiment driven by expectations of a Fed rate cut and rising geopolitical risks. With gold prices near record highs and silver aiming for $30 per ounce, the market focus will remain on upcoming economic data and Fed signals. Investors should keep a close watch on the FOMC minutes and Powell’s speech for insights into future market movements.
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.
