In the face of a declining dollar and anticipation of rate cuts by the US Federal Reserve, the prices of gold and silver rose to new highs in the domestic futures market on Monday, following strong global indications.
A new high of Rs 1,15,939 per 10 grammes was reached by the December gold contract on the Multi-Commodity Exchange (MCX). The gold contract for October also hit a record high of Rs 1,14,992 per 10 grammes. December delivery silver futures surged to a record high of Rs 1,44,179 per kilogramme.
According to analysts, the increase in foreign bullion prices was caused by an increase in wagers on the US central bank’s monetary easing.
The deputy vice president of research for non-agri commodities and currencies at Angel One told PTI that gold prices had been rising for a while and hit new highs in both domestic and foreign markets throughout the previous week. He continued by saying that there were no indications that the rally was abating and that investors were debating whether to book profits at high levels or enter.
He noted that other global causes, including trade concerns between the US and China, the Russia-Ukraine war, and tariff measures, have contributed to the current surge in bullion prices.
