Gold Prices Surge Amid Trade Deal Hopes
Gold prices in India have seen a notable increase as they approached ₹1.23 lakh per 10 grams on the Multi Commodity Exchange (MCX) on the morning of October 23. This rise is largely attributed to the anticipation of an India-US trade deal, which is expected to materialize soon. As per market data, MCX gold futures for December delivery traded at ₹1,22,938, reflecting a growth of 0.89%. Additionally, silver prices also experienced a jump of 1%, trading at ₹1,46,915 per kg.
Experts, including Jigar Trivedi from Reliance Securities, suggest that gold prices could fluctuate within the range of ₹121,500 to ₹123,000 per kg in the near future. This optimism among investors is further fueled by discussions around a potential trade deal between the US and China, which has led to a decrease in gold's appeal as a safe-haven asset.
On a global scale, gold prices faced some downward pressure, primarily due to a stronger US dollar. Spot gold prices fell by 0.2% to $4,084.29 per ounce, while U.S. gold futures for December delivery saw a rise of 0.9%. The dollar index's advance against other currencies made gold more expensive for international buyers, impacting overall demand.
Despite these fluctuations, gold prices have surged approximately 55% this year, with significant gains of over 5% in the current month alone. This rise is predominantly supported by expectations of further interest rate cuts from the Federal Reserve, which are anticipated to be discussed in their upcoming meetings.
Gold typically performs well in low-interest-rate environments, as it reduces the opportunity cost of holding non-yielding assets. Investors are keenly observing the US Consumer Price Index (CPI) report, which is expected to indicate that core inflation remained stable at 3.1% in September, even after delays caused by a government shutdown.
In conclusion, the interplay of local market dynamics, global economic conditions, and geopolitical factors continues to shape the outlook for gold and silver prices in India. As the market evolves, investors are advised to stay informed and consult with financial experts before making significant investment decisions.
