Gold prices on the MCX hovered at Rs 73,237 per 10 grams on Friday, hitting an intraday low of Rs 71,951. In the international market, prices maintained a similar trend, hovering around $2,338.70 per ounce. This indicates a certain level of stability in the gold market.
Meanwhile, silver hovered at Rs 93,628 per kg and hit an intraday low of Rs 91,700 on the MCX. In the international market, the price hovered around $30.51 per ounce.
Anuj Gupta, Chief of Commodity and Currency at HDFC Securities, said, “Yesterday, gold prices increased sharply by 0.85% and closed at 73131 levels. Silver prices also increased by 3.73% and closed at 93816 levels. Weakness in the dollar and weak US DATA supported the gold and silver prices. We are expecting that gold and silver prices may move on the positive side due to demand and weakness in the dollar.
A rate cut by the Bank of Canada and anticipation of a widely expected cut by the European Central Bank also boosted optimism over loosening monetary conditions across the globe.
“Gold may test $2380 to $2390 levels and silver may test $32 levels very soon. Gold prices rose yesterday weak economic data fueled expectations of interest rate cuts by the Federal Reserve, denting the dollar,” said Gupta.
Colin Shah, MD, Kama Jewelry, said that RBI’s verdict to maintain the repo rate comes as no surprise on the backdrop of uncertain global scenario, mainly the geo-political tensions that has been a constant concern, thereby stressing the need to be vigilant during these times.”
“With FY25, the CPI inflation forecast has been kept unchanged at 4.5%, followed by softness in inflation in Q2 FY25 brings in a mild relief. However, spillover risk will remain a pressure point in the second half of FY25. However, the GDP growth projection for FY25, having increased to 7.2% from the earlier 7%, showcases and infuses a belief that the country’s growth story will continue to remain robust, thereby strengthening the disposable income and purchasing power of the buyers. But, with current global economic instability, a muted growth in trade activities of gems and jewellery could be seen until the scenario gains stability,” added Shah.
