Gold Prices Hit New Lifetime High: Should You Buy Yellow Metal After Big Single Day Jump?
Gold prices India witnessed huge single day jump on March 21, 2024 after the US Federal Reserve’s decision to maintain interest rate steady at 5.25-5.5% and possibility of approximately 3 rate cuts in 2024. Price of 10 grams of 22K Gold soared by Rs 1000 to Rs 61,800 on Thursday and cost of 10 grams of 24K yellow metal surged by Rs 1090 to Rs 67,420 on March 21, 2024. Now price of 100 grams of 22 carat gold price is Rs 6,18,000 and cost of 100 grams of 24 carat yellow metal is Rs 6,74,200. Meanwhile, silver prices too recorded sharp rally today.
With today’s massive surge in gold prices, the precious metal has already scaled its fresh lifetime high of Rs 66,778/10 gram on Multi Commodity Exchange (MCX) futures for April 2024 expiry. Earlier, yellow metal prices opened at Rs 66,100/10 grams.
Meanwhile, May silver contracts on the MCX were seen trading with same zeal, soaring by Rs 1,152 or 1.53%/ kg to Rs 76,465 at 9:40 am.
As the gold prices have been surging, Neha Qureshi, Senior Technical and derivative Research Analyst, Anand Rathi Commodities & Currencies suggested buying gold April futures on the dips at 66,700, maintain the stop loss at Rs 66,200 with the target price of Rs 67,300. When it comes to silver May futures, Qureshi suggested buying on the dips at Rs 76,400, with a stop loss at Rs 75,400 and a target price of Rs 78,400.
Praveen Singh, Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas remarked on the soaring prices of yellow metal, “As investors expect more than four rate cuts this year, momentum buying in gold is likely to take gold further up, thus a run-up to $2250/$2300 is not ruled out in the near term. At the same time, a hawkish dot plot may lead to volatility will not be surprising.”
Spot gold prices rallied to a record high as the U.S. dollar and bond yields ticked lower soon after Fed Chair Jerome Powell decided to maintain its projection of 3 rate cuts for 2024. Lower interest rates reduce the possibility cost of holding non-yielding bullion and weigh on the dollar.
Spot gold was up 2.07% at $2,205.80 per ounce after rising to an all-time high of $2,222.39 earlier in the session. Meanwhile, silver rallied 2.83% at $25,815 per ounce.
“It’s the goldilocks scenario for gold prices, where marginally higher inflation expectations meet lower nominal rates to create decreased real yields,” said Kyle Rodda, a financial market analyst at Capital.com to Reuters.
Gold prices In 4 key cities of India on March 21, 2024:
Gold Price Chennai: 10 grams of 22 carat gold price in Chennai on March 21 is Rs 62,350 and price of 10 grams of 24 carat gold is Rs 68,020.
Yellow Metal Price Mumbai: 10 grams of 22 carat gold price in Mumbai on March 21 is Rs 61,800 and price of 10 grams of 24 carat yellow metal is Rs 67,420.
Gold Prices Delhi: Price of 10 grams of 22 carat yellow metal in national capital on March 21 is Rs 61,950 and cost of 10 grams of 24 carat gold is Rs 67,420.
Gold Price Kolkata: Price of 10 grams of 22 carat of yellow metal in Kolkata on March 21, 2024 is Rs 61,800 and cost of 24 carat of 10 grams gold is Rs 66,330.
Meanwhile, silver prices India witnessed rally too by Rs 1500 on March 21, 2024. You need to pay Rs 78,500 for 1 kg of Silver in India on Thursday.
Renu Baliyan Goodreturns
source: goodreturns.in
