Gold prices hit an all-time high on Friday in India amid fall in Indian headline indices – Sensex and Nifty and stronger rupee. According to analysts, gold is trading higher on the back of expectations that the US Federal Reserve will come out with rate cuts in the upcoming policy owing to global slowdown concerns. The sentiment is bullish on the precious metal, however, the analysts recommend caution since prices have rallied sharply without any pause. Gold prices today hit an all-time high of Rs 35,409 per 10 gram on MCX.
“MCX Gold touched an all-time high with spot gold in the international market hitting a six-year high, supported by fresh tensions in the Middle East and dovish comments from US Federal Reserve head. The sentiment is bullish in the precious metals, however, we recommend caution since prices have rallied sharply without any pause,” Jigar Trivedi, Fundamental Analyst – Commodity, Anand Rathi Share and Stock Brokers told Financial Express Online.
Gold prices on MCX made a life-time high of Rs 35,409 per ten gram today due to drop in dollar, fall in equity markets and global growth concerns owing to US-China trade tensions. Earlier, we had seen a high of RS 35,074 on Aug 28, 2013. Silver prices on MCX also touched high of Rs 41,280 per ten gram today, which is its highest since Jun 15, 2018, Ajay Kedia, Director, Kedia Commodity told Financial Express Online.
Today, Rupee opened at 68.78 a dollar against the last close of 68.97 a dollar. The Indian currency gained 23 paise to 68.74 on Friday on rate cut expectations by the US Federal Reserve in the upcoming policy. The New York Fed President John Williams also said that policymakers need to add stimulus early to deal with too-low inflation when interest rates are near zero and cannot wait for economic disaster to unfold.
At 10:56 AM, while the Sensex was trading at a level of 38,638.99, 258.47 points down from the last close, Nifty was at 11,519.05 level, down 77.85 points from the previous settlement.