Gold Prices Shine The Most, 24-Carat Hits New All-Time High To Rs 69,380; Will Buying Trend Continue?

Gold prices in India are glittering the most so much so that 24-carat, 22-carat and 18-carat yellow metals have touched new lifetime highs. Gold in India tracked international prices as traders expect an easing in policy by the US Federal Reserve soon after the latest inflation data. Spot gold touched a new all-time high of $2,265.73.

FY25 seems to be the year of monetary policy easing, resilient economic growth and trimming of interest rates. US Federal Reserve has reiterated to cut rates by three times before 2024-end, and the latest inflation print is like icing on the cake.

US inflation inched up to 3.2% in February 2024, staying close to its previous month and market expectations of 3.1%, keeping hopes of as early as June rate cuts alive. The dollar traded steady!

Rate cuts is another push for non-yeilding assets like bullion. In addition to this, geopolitical tensions intensify which is another support for safe haven like gold that are favourable invesrment for hedging returns amidst uncertainties.

Gold Prices In India, April 1, 2024:

All grams in 22-carat, 24-carat and 18-carat have touched their lifetime highs.

In 22-carat, prices of 10-gram surged by Rs 850 to Rs 63,600, while 100-gram climbed by Rs 8,500 to Rs 6,36, 600. Also, 8-gram and 1-gram of gold surged by Rs 85 and Rs 680 to Rs 6,360 and Rs 50,880 compared to the previous day.

Further, in 24-carat, gold prices jumped by Rs 930 to Rs 69,380, a new record level. While 100 grams advanced by Rs 9,300 to Rs 6,93,800. Also, 1-gram and 8-gram climbed by Rs 93 and Rs 744 to Rs 6,938 and Rs 55,504 respectively.

Meanwhile, under 18 cars, 10-grams of gold jumped by Rs 700 to Rs 52,040, while 100 grams soared by Rs 7,000 to Rs 5,20,400. Further, 1-gram and 8-gram climbed by Rs 70 and Rs 560 to Rs 5,204 and Rs 41,632 respectively compared to the previous day.

MCX, Spot Gold Prices:

Gold with expiring on April 5 skyrocketed to hit a new high of Rs 69,487 per 10 grams. The bullion traded currently at Rs 68,880, up by Rs 1,203 or 1.78% from the previous closing of Rs 67,677.

Also, gold with June 5 expiry climbed to a new high of Rs 68,926 per 10 grams. At the time of writing, this commodity traded at Rs 68,885, rising by Rs 1,184 or 1.75% from the previous closing of Rs 67,701 per 10 grams.

Coming to international prices, spot gold touched a new high of $2,265.73 an ounce before trading at $2,259.77 up by 1.2%. US Gold Futures with expiry of June 2024 skyrocketed to hit its record high of $2286.35 before trading at $2,280.20 up by 1.87%.

Gold Prices Weekly Outlook:

In its WISE Money report, SMC Global Securities highlighted that gold prices saw weekly gains as investors processed comments from the Federal Reserve Governor Christopher Waller regarding potential interest rate cuts and awaited further U.S. economic data for policy indications. The previous week, gold hit a record high following the Fed's anticipation of three rate cuts in 2024, despite recent inflationary pressures.

SMC's note also pointed at Governor Waller's stance, citing disappointing inflation data, suggesting a delay in cutting the short-term interest rate target. Investor attention turned towards the upcoming U.S. core personal consumption expenditure (PCE) price index report, scheduled for release on Friday, to gauge the timing of potential rate adjustments. Projections indicated a 0.3% rise in the PCE price index for February, maintaining an annual pace of 2.8%.

Additionally, the weekly U.S. initial jobless claims report was under scrutiny, it said.

Furthermore, SMC's note said, ". Traders, meanwhile, reflected a 62% probability of rate cuts beginning in June, according to the CME Group's FedWatch Tool. Lower interest rates typically decrease the opportunity cost of holding gold. The gold-silver ratio currently stands at 88.866, indicating a bullish trend. This suggests that gold is likely to outperform silver in the upcoming sessions."

However, the brokerage also believes a hurdle is observed near the 91 level. Gold prices remained range-bound for most of the month, with a potential breakout anticipated above the current resistance level of $2,225 per ounce, potentially targeting the $2,300 mark. Silver prices on COMEX were expected to trade within the range of $24.00-$26.00, displaying
mixed trends.

For April 1st to 5th, SMC's note said, "Gold prices on MCX were projected to trade between 64700-67500, with possible corrections from higher levels. Silver prices on MCX were anticipated to fluctuate within the wider range of 72900-76000."

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.