Gold Prices In US: Yellow Metal Rates Near Record High Amid Geopolitical Unrest; Citi Sees Further Surge

In the wake of escalating geopolitical tensions between Iran and Israel, gold prices remained steadfastly close to a record high reached last week, bolstered by heightened demand for the safe-haven metal. Spot gold showed resilience, edging up by 0.2% to $2,387.11 per ounce, following a historic peak of $2,431.29 per ounce attained on Friday. Meanwhile, US gold futures also displayed a notable ascent, climbing by 0.9% to $2,403.90 per ounce.

Reflecting these upward movements, the gold market experienced incremental gains across various metrics on April 15th. Ten grams of 22-carat gold saw a $5 increase, reaching $720, while 24-carat gold witnessed a similar uptick, rising to $760 from the previous day's figures. This trend extended to broader market measurements, with 100 grams of 22-carat and 24-carat gold ascending by $50 each, settling at $7,200 and $7,600, respectively. Likewise, prices for 10 grams of 18-carat gold and 100 grams of the same category exhibited an increase of $4 and $40, standing at $589 and $5,890, respectively, compared to the previous day's values.

Despite data revealing a stronger-than-expected surge in US retail sales for March, gold surged by 1.6% in the previous session, prompting speculation about the potential for rate cuts in the US market. Recent data releases from the US have prompted reconsideration regarding the likelihood of rate adjustments, with market sentiment now anticipating fewer than two quarter-point cuts by year-end, compared to the previously projected three cuts just a month ago.

Citi, in a recent note, emphasized the divergence of the bullion complex from US rates and the US Dollar, attributing it to robust physical consumption drivers, including imports in major markets like India and China, as well as increased demand for bars and coins. Additionally, geopolitical hedging and central bank purchases were identified as key factors underpinning market support. Citi further projected a bullish trajectory for gold prices, foreseeing them to potentially reach $3,000 per ounce over the next 6-18 months, signalling an optimistic outlook for investors and traders alike.

While gold maintained its upward momentum, other precious metals witnessed mixed performance. Spot silver experienced a marginal decline of 0.3%, settling at $28.80 per ounce, while platinum recorded a modest rise of 0.4% to $966.49. Conversely, palladium faced a setback, with prices slipping by 1% to $1,025.43 per ounce, reflecting the diverse dynamics within the broader precious metals market.