HYDERABAD: Prices of gold and silver galloped past the $1,992 per ounce and $24 per ounce mark as the week drew to a close, pushing gold to over 63,000 per 10 gm (999 purity including taxes) and silver to over 75,000 per kg in local markets on Friday.
Gold prices also hit an all-time high of 61,914 per 10gm on MCX on Thursday night, soaring over 1,130 per 10 gm in just a span of a couple of minutes in what is being described as an instance of a freak trade by bullion experts.
Surendra Mehta, national secretary, Indian Bullion & Jewellers (IBJA), attributed the latest rally in precious metals to the softening of inflation in the US, which triggered anticipation of the US Fed hitting the pause button on interest rate hikes.
"We may see another $30-40 per ounce correction in gold prices from here to about $1,950 per ounce levels in another week before it can cross the $2,000 per ounce mark. I see gold going up to $2,019 per ounce levels and 64,000-64,500 per 10gm (including taxes) by December 10," said Mehta.
According to Avinash Gupta, former director, All India Gems & Jewellery Domestic Council, apart from the softening of inflationary pressures, the negative jobs data coming out of the US market too played a role in galvanizing gold and silver to higher levels.
Gupta also attributed the current rally to speculative buying and cautioned investors to keep away from such a volatile market. Agreeing, Anil Jain, partner, M Nemichand Jain Jewellers, said gold prices have been so volatile that in less than a month its prices scaled 63,000 followed by lows of around 61,600 per 10 gm before surging again to over 63,000 levels.
Hyderabad-based bullion analyst GPS Vigneshwar said,"Till the ME conflict continues, the market will stay bullish. Unless the peace process does not start market will remain volatile."
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