Gold prices in the national capital witnessed a significant rally of Rs 580, reaching Rs 97,030 per 10 grams on Monday, according to the All India Sarafa Association. This surge mirrored robust trends observed in international markets.
On the preceding Friday, gold with 99.9 per cent purity had closed at Rs 96,450 per 10 grams. Similarly, gold of 99.5 per cent purity saw a climb of Rs 580 to settle at Rs 96,580 per 10 grams (inclusive of all taxes) on Monday, compared to its previous closing of Rs 96,000 per 10 grams.
Chintan Mehta, Chief Executive Officer at Abans Financial Services, noted that “Gold prices edge higher, but remain under pressure, as softer US PPI and CPI data for April indicate disinflation.” He further pointed out that “At the same time, the US Treasury yield is approaching 4.5 per cent, extending Friday’s rebound after rating agency Moody’s downgraded the US credit rating from Aaa to Aa1.”
Mehta added that this downgrade has “reignited interest in gold, as investors reduce exposure to US Treasury bills and seek a safe haven asset.”
Silver also experienced an upward trend, appreciating by Rs 500 to reach Rs 98,500 per kg (inclusive of all taxes), up from its Friday closing of Rs 98,000 per kg.
On the Multi Commodity Exchange (MCX), the most actively traded gold futures contract rallied by Rs 1,182 or 1.28 per cent to trade at Rs 93,623 per 10 grams. Silver futures for July delivery also saw an increase of Rs 662, trading at Rs 95,980 per kg on the commodities bourse.
Globally, spot gold recorded a gain of USD 39.05 or 1.22 per cent, reaching USD 3,241.82 per ounce.
Pranav Mer, Vice President, EBG – Commodity & Currency Research at JM Financial Services, highlighted that “Focus during the week will be on the US macroeconomic data such as manufacturing/ services PMI, and housing data.” He stated that “The data release will provide more impetus for the US Federal Reserve’s future monetary policy cycle.”
Looking ahead, Goldman Sachs projects a bullish outlook for gold, anticipating it to rise to USD 3,700 per ounce by the end of 2025. This forecast is based on the continued buying of the precious metal by central banks and the expectation of increased holdings by ETF investors in anticipation of interest rate cuts by the US Federal Reserve and growing concerns about a recession. In a recessionary scenario, Goldman Sachs suggests that gold could potentially climb to as high as USD 3,880 per ounce.
