Gold prices hit all-time high on strong US inflation figures, Fed rate cut buzz. Silver price also climbs a new peak

On account of strong US inflation figures and the US Fed rate cut buzz, the gold rate today climbed to a new peak in the domestic and international markets. Comex gold price today climbed to a new lifetime high of $2,412 per troy ounce while the spot gold price touched a new high of $ 2,395 per ounce during early morning deals. Silver prices also ascended to a new peak during the early morning session on the Multi Commodity Exchange (MCX). MCX gold rate today hit a new lifetime high of ₹72,678 per 10 gm while MCX silver rate today touched a new high of ₹84,102 per kg within a few minutes of the commodity market’s opening bell.

US inflation figures in focus

Speaking on the reason for the rise in gold and silver rates today, Anuj Gupta, Head of Commodity & Currency at HDFC Securities said, “Gold and silver prices are ascending today as the market is expecting US Fed rate cut after the strong US CPI data released on Wednesday. Earlier, the market was expecting the announcement of the rate cut cycle in the US Fed meeting scheduled in June 2024. However, after this strong US inflation figure, we are expecting a rate cut announcement in the upcoming US Fed meeting scheduled from 30th April to 1st May 2024.”

Kaynat Chainwala, Senior Manager — Commodity Research at Kotak Securities said, “COMEX Gold prices pared early losses and closed higher on Thursday, despite dollar and US benchmark treasury yields remaining elevated, as investors digested geopolitical risks against mixed inflation data. Meanwhile, the minutes of the March FOMC meeting showed that the Federal Reserve does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2%. COMEX Gold futures rose to a fresh record high in early Asian trading on Friday, surpassing $2400 per troy ounce levels, amid concerns of a wider conflict in middle-east.”

Expecting further upside in the gold and silver prices, Sugandha Sachdeva, Founder of SS WealthStreet said, “Looking ahead, both gold and silver appear to have a positive trajectory for 2024, with some corrective rallies along the way that seem to entice buying interest yet again. Profit booking may affect returns in the short term, but the outlook remains largely optimistic for both metals. Geopolitical uncertainty continues to swirl around owing to high-stakes elections in several major economies, and the proposed three rate cuts by the US central bank during the year could influence price dynamics and keep gold and silver prices well supported.”

Important levels to watch

Anuj Gupta of HDFC Securities said that the MCX gold rate today breached an important hurdle placed at the ₹72,500 level and now the yellow metal price has made a strong base at ₹71,200 per 10 gm levels. Likewise, silver rates today breached above ₹84,000 mark, making a strong support base at the ₹81,800 level. He said that silver prices may touch the ₹91,000 mark once it gives a breakout above the ₹85,000 mark on a weekly closing basis. He predicted that gold prices may touch ₹73,500 and ₹75,000 per 10 gm in the short to medium term.

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