New Delhi, April 4 (IANS) Gold prices skyrocketed to a new all-time high of Rs 69,908 per 10 gm on India’s Multi Commodity Exchange (MCX) after climbing for seven consecutive trading days in the international market. The surge was driven by US Fed Chairman Jerome Powell’s hint of an interest rate cut and geopolitical tensions.
Gold futures contract on the MCX for June 2024 expiry opened at Rs 69,868 per 10 gm and quickly rose to Rs 69,908 following news of the precious metal hitting $2,323.70 per ounce globally. This marks a significant gain of close to 11 per cent this year as investors seek the safety of gold amid economic uncertainty.
Experts attribute the latest price surge to Powell’s speech confirming a potential interest rate cut, making financial investments less appealing and driving the demand for gold. Central banks, particularly China, have also been increasing their gold reserves, further contributing to the price hike.
In the Indian market, gold demand traditionally spikes during wedding seasons as it is a popular gift for brides and grooms. However, jewellers have noted a dampening effect on purchases due to the soaring prices. This trend is also reflected in the declining imports of the precious metal, indicating a shift in consumer behavior.
The ongoing conflicts between Israel and Hamas, along with the Russia-Ukraine war, have fueled uncertainties in the global economy, prompting investors to flock to safe-haven assets like gold. With no signs of the price rally slowing down, the future of gold prices remains a topic of interest for investors and analysts alike.
