Gold Rate Today: 5-Month High Amid USD Dip.
The gold rate today has witnessed a remarkable upswing, touching a five-month high on the Multi Commodity Exchange (MCX). Following Jerome Powell’s rate pause hint, a surge occurred due to the US dollar dip, which impacted financial markets. This article delves into the factors driving this remarkable ascent in today’s gold rate and briefly overviews the silver market’s performance.
Gold Price Rally on MCX
The December 2023 gold rate on MCX opened impressively at ₹60,401 per 10 grams, signalling a significant price surge. As trading commenced, gold quickly reached an intraday high of ₹60,615, reflecting the surge in demand for this precious metal. Furthermore, the spot gold price in the international market hovers around $1,976 per ounce, near the crucial $1,980 level. Therefore, represents a significant barrier.
Silver Rates Follow Suit
Silver, often seen as a more affordable alternative to gold, has also experienced a significant boost. Today’s silver rate began at ₹71,995 per kilogram and swiftly climbed to an intraday high of ₹72,164. Silver prices are oscillating around $22.90 per ounce on the global stage.
Factors Driving the Rally
Anuj Gupta, Head of Commodity & Currency at HDFC Securities, highlighted the primary drivers behind the gold rate surge. According to him, the uptick was credited to Jerome Powell’s suggestion of a rate pause, effectively halting the dollar rally. The consequent weakening of the dollar has triggered a rally in gold prices, making it an attractive investment option.
Additionally, Gupta pointed out that the resolution of the Israel-Gaza conflict following US President Joe Biden’s visit played a role in calming the markets. However, the more significant factor remains the dovish stance of the US Federal Reserve, which has revitalised the demand for this precious metal.
In conclusion, the gold rate today has achieved remarkable heights, riding on the coattails of a diminished US dollar value, courtesy of US Federal Reserve Chairman Jerome Powell’s hint at a rate pause. Today’s gold rate increase has piqued interest in 22k gold as a secure investment choice for wealth preservation and growth. The Israel-Gaza ceasefire bolstered stability, but the primary driver of demand for gold remains the US Fed’s interest rate stance. The resilient gold market, with its fluctuating rates, continues to attract investors and consumers seeking financial security and growth opportunities.
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