Gold price hits all-time high in India after US Federal Reserve head’s dovish remarks

Mumbai-India (July 11)  Gold prices hit an all-time high in India after the US Federal Reserve Chairman Jerome Powell indicated towards interest rate cut soon in a bid to shore up the economy in view of global slowdown concerns and trade worries with China and other countries. On Multi Commodity Exchange of India (MCX), gold futures for August delivery rose to a lifetime high of Rs 35,145 per 10 gram, up 0.9% from the last close. Today, on MCX, gold futures were last seen trading at Rs 34,850 per ten gram, having resistance at Rs 35,380 per ten gram.

“Gold prices on MCX surge to record high of Rs.35145.00 per 10gms as dovish central bank expectations help gold attract investors. Support was seen in the prices after the US Federal Reserve Chairman Jerome Powell’s dovish remarks strengthened expectations of an interest rate cut this month. Gold prices, if sustained above Rs.35,000.00 level, then it may lead to further buying to test the next level in the range of Rs 36,200-36,500 per ten grams. Gold demand in India can see a dip as high gold prices and high customs duty on gold will take a pinch, as customers now need to shell out 15.5 per cent extra on buying gold, which is quite high,” Ajay Kedia, Director, Kedia Commodity told Financial Express Online.

Meanwhile, globally gold prices surged to a one-week high on Thursday, extending gains from the last session after US Federal Reserve Chairman Jerome Powell’s dovish comments. Spot gold rose 0.3% to $1,422.67 per ounce at 0948 GMT, after earlier hitting its peak since July 3 at $1,426 per ounce. The yellow metal gained 1.5% in the last session. Internationally, spot gold was seen trading at  $1,420.80 an ounce. Sovereign gold also increased by Rs 100 to Rs 27,400 per eight gram.

FinacialExpress