On Thursday, gold futures on the MCX surged to an unprecedented level of Rs 61,490 per 10 grams, following the positive performance of international bullion prices. The recent indications from the US Federal Reserve suggesting a potential pause in interest rate hikes have provided additional momentum to the precious metal as the US dollar has weakened.
As of 11:15 am on Thursday, gold futures for June were trading at Rs 61,397 per 10 grams on the MCX, registering a rise of Rs 432 or 0.71%. Concurrently, July silver futures were being traded at Rs 77,450, displaying an increase of Rs 868 or 1.13% during the same period.
According to Deveya Gaglani, Research Analyst – Commodities at Axis Securities, the Federal Reserve’s suggestion of a potential pause in interest rate hikes during the upcoming meeting has created a favourable climate for gold prices. This is primarily due to the decline of the dollar index towards the $101 mark and the persistent pressure on bond yields, which have collectively contributed to an upward trend in gold prices.
His analysis mentioned that the short-term outlook for gold is positive, emphasising a bullish trend. He further specified that the immediate resistance level is approximately $2050, while the support level is around $2005.
His analysis mentioned that the short-term outlook for gold is positive, emphasising a bullish trend. He further specified that the immediate resistance level is approximately $2050, while the support level is around $2005.
Anticipating the upcoming monetary policy decision by the European Central Bank and the release of the non-farm payroll report on Friday, it is predicted that the price of gold may experience volatility shortly.
According to Anuj Gupta, Vice President (VP) of Commodity and Currency Research at IIFL Securities, gold futures have shown a year-to-date gain of 10.78%, equivalent to Rs 5,928, based on the closing price as of Wednesday. On a month-to-date basis, gold futures have increased by 1.59%, which amounts to Rs 955. Similarly, silver futures have experienced a year-to-date rise of 10.43%, equivalent to Rs 7,232, and a 3.30% increase of Rs 2,447 in May till now.
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