The festival season is about to begin in the country. With the arrival of the festival, the price of gold in the market will also increase. In this episode, the price of gold on MCX has reached Rs 76,000 per 10 grams on Wednesday. This price of gold is at a new all-time high. During the last week, the US Fed decided to cut rates by 50 basis points. This affected the price of gold. Gold prices have increased by Rs 2,900 per 10 grams.
Apart from gold, the price of silver has declined by Rs 172. With this, the price of silver has reached Rs 92,221 per kg. However, silver also saw an increase last week. Silver has increased by Rs 3,900 per kg during this period. According to an ET report, Anuj Gupta of HDFC Securities attributed the record high prices of gold to “continued optimism about the US economy”.
Another new factor is the announcement of a flurry of stimulus measures by the Chinese government “in interest rates, which has raised hopes of economic recovery.” Anuj Gupta of HDFC Securities said, “Another new factor is the announcement of a flurry of stimulus measures by the Chinese government, which has raised hopes of economic recovery.” The significant 50 basis point rate cut by the Federal Reserve last week, as well as concerns about further weakness in the labor market and the revised dot plot have increased the possibility of additional rate cuts, creating more upside potential for gold.
Manav Modi, Senior Analyst, Commodity Research at Motilal Oswal, said, “Preliminary manufacturing PMI numbers came in lower than expected across major economies. US consumer confidence data also came in lower at 97 against expectations of 103.9, lending support to bullion’s upside.”
Several Fed officials supported the bank’s recent 50 basis point rate cut, but anticipated a slower pace of reductions in the coming months. With Governor Powell and more than nine other Fed officials scheduled to speak this week, any change in the tone of the recent Fed meeting could cause price volatility, according to Modi.
According to Modi, further developments in the situation and updated information may increase the safe-haven appeal of gold and silver prices. “The daily chart of MCX Gold October futures is witnessing a strong bullish trend, with prices moving above the rising trendline and making consecutive higher highs and higher lows. A bullish engulfing candlestick pattern has emerged, indicating continued bullish momentum.
