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regular-article-logo Friday, 21 June 2024

Gold prices surge to Rs 64,900 per 10 gram amid expectations of rate cut by US Federal Reserve

In Delhi, prices touched the Rs 65,000-mark on Tuesday, an increase of Rs 800 from its previous close. Globally, Comex Gold price was $2145.10 per ounce, reaching a three-month high from $2044 on December 4

A Staff Reporter Calcutta Published 06.03.24, 10:40 AM
Global cues

Global cues Sourced by the Telegraph

Gold prices in Calcutta surged Rs 850 on Tuesday to Rs 64,900 per 10 gram on global cues amid expectations of a rate cut by the Federal Reserve. The price was Rs 64,050 per 10 gram on Monday and Rs 62,800 per 10 gram on March 1.

In Delhi, prices touched the Rs 65,000-mark on Tuesday, an increase of Rs 800 from its previous close. Globally, Comex Gold price was $2145.10 per ounce, reaching a three-month high from $2044 on December 4.

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“BIS has said that inflation is under control across the world. That makes the probability of interest rate cuts to happen, which means upward movement of gold prices. Also, there is some amount of financial crisis seen in certain banks in the US. Considering the possibility of commercial loan default happening in certain banks in the US, there could be a crisis that is building up and with that fear, gold prices are going up,” said Suvankar Sen, MD & CEO, Senco Gold and Diamonds.

“Weak US economic data last week improved the conviction that the Federal Reserve might start cutting rates in the coming months. Recently, Fed governor Christopher J. Waller said he favoured a shift in the Fed’s holdings toward a larger share of short-term treasuries. Markets will now focus on US ISM Services, jobs data and (Jerome) Powell’s testimony for more cues on Fed policy path,” said Ravindra Rao, head — commodity research at Kotak Securities.

“Spot gold prices (24 carats) in the Delhi markets are trading at Rs 65,000 per 10 grams, up by Rs 800, taking bullish cues from the overseas markets. In domestic markets, spot gold hit a new all-time high of Rs 65,000 on Tuesday,” said Saumil Gandhi, senior analyst at HDFC Securities.

“The rise was also fuelled by signs of slowing industrial and construction spending in the US, coupled with a decrease in inflationary pressures,” said Jateen Trivedi, VP Research Analyst at LKP Securities.

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