Gold hits two-week high on US rate cut speculation; silver surges marginally

Spot golden saw an awesome 1.1% increase, reaching $2,372.46 per ounce by 1203 GMT, achieving its highest level successful implicit 2 weeks. Throughout the week, prices person soared by much than 3%.

In tandem with spot prices, U.S. golden futures besides experienced a important upswing, jumping by 1.7% to $2,379.30.

Also read: Akshaya Tritiya 2024: Gold terms rises ₹41,000 successful 5 years. Experts spot up to ₹85K highest adjacent year

“Gold is driven higher by emergence successful festive request successful India with further enactment from a weaker U.S. dollar, which is down connected rising bets for an aboriginal complaint chopped by the U.S. Federal Reserve. Safe-haven request owed to geo-political issues and mixed momentum successful planetary equities excessively is seen supportive to the bullion," said Pranav Mer, VP - Research (Commodity & Currency) BlinkX and JM Financial.

What's weighing connected golden prices?

Gold continued its ascent pursuing a 1% surge connected Thursday, triggered by reports revealing a higher-than-anticipated summation successful caller claims for unemployment benefits among Americans past week. 

Investors are eagerly awaiting the merchandise of the U.S. shaper terms scale and user terms scale information scheduled for adjacent week, hoping for caller insights into the Federal Reserve's imaginable involvement complaint adjustments.

Traders are presently factoring successful astir a 68% likelihood of a Fed complaint chopped successful September, arsenic indicated by the CME FedWatch Tool. Such complaint reductions typically diminish the accidental outgo associated with holding non-yielding assets similar gold.

Regarding U.S. inflation, San Francisco Federal Reserve President Mary Daly remarked connected Thursday that determination is "considerable" uncertainty astir its trajectory successful the forthcoming months.

In different news, Palestinian residents reported Israeli forces bombarding the metropolis of Rafah successful the Gaza Strip connected Thursday. Additionally, an Israeli authoritative confirmed the cessation of indirect negotiations with Hamas.

Back home, golden and metallic prices made a important rebound connected Friday, aft experiencing declines successful 2 consecutive sessions. The yellowish metallic surged by ₹950, surpassing the ₹73,000-mark successful the nationalist capital. This uptick was fueled by a bullish planetary inclination and robust home demand, peculiarly owed to the Akshaya Tritiya festival.

Also read: Akshaya Tritiya: Religare Broking lists 6 cardinal reasons to bargain golden successful 2024

“On Akshaya Tritiya time Gold prices saw crisp uplift Fueled by anemic US jobs information and a falling dollar, golden prices connected Akshaya Tritiya soared implicit ₹1,000 successful MCX to ₹72,700. This surge follows a ₹2,700 emergence wrong a week arsenic investors reacted positively to the data, anticipating an earlier US involvement complaint chopped that benefits gold. Comex Gold saw emergence of much than 28$ astatine 2375$ beardown determination of 75$ successful 1 week," said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.

Spot metallic accrued by 0.8% to $28.56, portion platinum strengthened by 1.7% to $990.73, and palladium saw a emergence of 1.9% to $985.81. Notably, each 3 metals experienced gains for the week.

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Published: 10 May 2024, 11:11 PM IST