Gold prices opened on the Multi Commodity Exchange (MCX) on Tuesday at Rs 71,026 per 10 grams and hit an intraday low of Rs 70,988. In the international market, prices hovered around $2,346.05 per ounce.
Meanwhile, silver opened at Rs 81,971 per kg and hit an intraday low of Rs 81,776 on the MCX. In the international market, the price hovered around $27.92 per ounce.
Jateen Trivedi, VP Research Analyst, LKP Securities said, “Gold prices continued their upward trajectory, rising by more than Rs 250 in MCX to reach 70900, supported by a surge in global Comex prices, which touched $2350 in the early morning hours. The ongoing buying of gold by global central banks has provided significant support to prices, along with sustained geopolitical tensions and the anticipation of imminent interest rate reversals. While the overall price outlook remains bullish, some correction may be expected towards 69500 during the course of this week.”
Gold
MTD: 4.78%, 3235
YTD: 12.20%, 7709
Silver
MTD: 9.10%, 6827
YTD: 10.00%, 7445
Physical
Gold: 71300
Silver: 82500
Sachin Jain, Regional CEO, India, World Gold Council, said, “Gold has touched historic high prices of Rs 71,000 per 10 grams in India resulting in near stagnant jewellery demand in the first quarter in both rural and urban centres as per anecdotal feedback from the jewellery retailers.”
Over the years, Indian households have created a strong cultural bond, underpinned by strong economic wisdom, between gold and auspicious festivals, so much so the positivity around these festivals is enhanced by a token purchase of gold. Hence, the start of the current festive season with Gudi Padwa, Ugadi, Chaitra Navratri and Ramzan Eid falling in April, should see an uptick in consumer purchases and drive the gold demand upwards. In the past few days, the industry has been reporting increased consumer interest and good prior bookings for festivals, said Jain.
Also, during the next two months’ general election period, there will be heightened scrutiny of the movement of gold and cash. Jain says, “Except during festivals, gold jewellery demand will likely remain subdued during a large part of Q2, even if prices moderate over the coming months. On the flip side, higher prices could encourage investment into gold-linked digital and investment products.”