Ahmedabad: Continuing its rally in the international market for the seventh consecutive day, gold price in the local markets rose to a new record high on Friday, reaching Rs 67,500 per 10g. Analysts attribute this spike to the weakening of the US dollar, fuelled by expectations of an interest rate cut by the US Federal Reserve in June.
This led to increased procurement of gold by central banks, which has raised the price of gold. The price — Rs 66,600 per 10g on Thursday — shot up by Rs 900 in a single day.
“Several geopolitical factors, including the economic concerns in China and a softer tone in the global equity markets, have driven up the price of gold. Even as officials have downplayed speculations on the drastic change in policy by the US Federal Reserve, gold price continues its upward march,” said Haresh Acharya, director of the India Bullion and Jewellers’ Association (IBJA). He added, “Speculations over the escalation of military tensions in the Middle East are also pushing up the price. In the international market, the price of gold is expected to climb towards $2,200 in the coming days.”
Despite the high prices, Feb witnessed a six-month high in gold imports at 13.9 metric tonnes. Analysts warn of a possible sell-off by investors.
In contrast, the price of silver has remained relatively stable, hovering around Rs 74,000 per kg.
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