Chennai: Gold prices crossed ₹ 77,000 levels in the Indian market on Thursday as the yellow metal made a new high in the international market. While anticipation of rate cut by the European Central Bank and geo-political tensions fueled gold’s movement in the international market, rupee at an all-time low level made gold costlier in the domestic market.
Gold in the Indian market has been moving up for the past three days. On Wednesday, it made a high of ₹ 76,890 per 10 gm and it opened higher on Thursday morning. By evening, at the Multi Commodity Exchange, gold prices touched a new high of ₹ 77,019.
“In Indian market, the weak rupee has been supporting the gold prices. Rupee touched an all-time low against dollar on Thursday and is bracing for further weakness. However, gold also made a new high in the international market on Thursday,” said Ajay Kedia, MD, Kedia Commodities.
From the previous record high of $2685.4 per ounce on Wednesday, gold edged higher at $2688.7 on Thursday. The anticipation of a rate cut by the European Central Bank firmed up gold prices. Gold has already been receiving support from the geo-political tensions.
“Even the lesser than expected rate cut by the US Federal Reserve did not affect gold much,” he said.
Global analyst firms have predicted that gold will see $3000 per ounce levels in 2025. If the rupee remains at the current levels, this will push gold to ₹ 84,000 to ₹ 85,000 levels by June 2025.
However, silver remained subdued on Thursday edging lower to ₹ 92,445 per kg against ₹ 93,143 on Wednesday. The bearishness in base metals due to the Chinese demand saw silver underperforming than gold. The current gold-silver ratio at 85 is also skewed towards the yellow metal.
