Gold prices soar to record high of ₹94,573/10gm in India
What's the story
Gold futures on the Multi Commodity Exchange (MCX) hit a fresh all-time high of ₹94,573 per 10gm. The surge was fueled by prevailing global economic uncertainties and geopolitical tensions. Silver also witnessed a minor uptick in value amid the changes, mirroring the overall trend in precious metals. The spike in gold prices indicates an increasing demand for safe-haven assets amid uncertain times.
Market trends
Gold futures open with a significant jump
In early trade today, gold June futures on MCX opened with a jump of ₹1,122 (over 1%). This took the price to an all-time high of ₹94,573 per 10gm. Meanwhile, silver May futures contracts opened flat at ₹94,794/kg with a marginal gain of just ₹20 or 0.02%. Yesterday, gold June futures contract settled at ₹93,451 per 10gm with a gain of 0.21%, while silver May futures contract settled at ₹94,774 per kilogram with a loss of 0.1%.
Market influences
Geopolitical tensions and dollar index impact precious metals
Gold and silver prices stayed stable in international markets amid global uncertainty and a weak dollar index. The Chinese government's decision to stop Boeing aircraft purchases from the US, in addition to halting the purchase of spare parts for these aircraft, has further impacted the prices of precious metals. "Fear of selling US treasury by China is also giving fuel to precious metals," said Manoj Kumar Jain of Prithvifinmart Commodity Research.
Economic factors
Dollar index near 2-year lows
The dollar index is trading near its two-year lows, and the US economic data released last week was mixed, both supporting gold and silver prices. Jain also gave specific ranges for gold and silver prices at MCX. He said gold has support at ₹93,000-₹92,660 and resistance at ₹93,950-₹94,500. For silver, he said support levels were ₹94,000-₹93,350 and resistance levels ₹95,500-₹96,650.