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Gold Hits New Peak, Eyes Rs 85K

Gold prices made a fresh high of $2799 per ounce in the international market, moving closer to a major resistance level of $2800.

Chennai, Jan. 31: Gold prices in the Multi Commodity Exchange made a new high of Rs 82,415 per 10 gm on Friday as uncertainties over trade tariffs, inflation, bond yields, and US dollar supported the yellow metal. While gold is expected to rise to Rs 85,000 per 10 gm in the Indian market in a couple of months, silver may outperform.

Gold prices made a fresh high of $2799 per ounce in the international market, moving closer to a major resistance level of $2800. In the international market gold has been scaling up by 6.5 per cent or $175 in the past 30 days. While the uncertainties in the global trade front have been brewing and the anticipation of tariffs by the US have been looming large, safe haven gold has garnered significant support from the market.

The US dollar, which had seen 110 levels in the recent past, has remained subdued. Further, the declining bond yields have been lending support to gold. Though the US Federal Reserve has held its interest rates steady, the rise in inflation is emerging as a concern to be tackled. “US inflation rates have risen from 2.6 per cent in November to 2.9 per cent in December. The expectations of a rate cut have been strong in the market since then,” said Ajay Kedia, MD, Kedia Commodities.

These factors have led to increased investments in gold. As per reports, 12.9 million troy ounces of gold have been delivered to COMEX-approved warehouses since late November, raising stocks there by 73.5 per cent to 30.4 million ounces, the highest since July 2022. Gold ETFs too have seen significant inflows. Gold ETFs saw inflows of $778 million in December.

In the domestic market, the weak rupee supported gold as the price gained Rs 5500 per 10 gm in the past 30 days to reach Rs 82,415.

Silver too gained Rs 6300 per kg or 7.2 per cent to move up to Rs 94,000. In the international market silver made a gain of 9 per cent in the past month.

“We expect silver to outperform going ahead as the gold-silver ratio has touched 89 and is expected to ease. This will see silver priced at $40 per ounce or Rs 1.3 lakh a kg in the first half of this year,” said Kedia.

As for gold, price levels of Rs 85,000 can be witnessed in a couple of months, he added.


( Source : Deccan Chronicle )
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