Futures price for gold increases by Rs 888, now at Rs 95,610 per 10 grams; futures price for silver declines by Rs 475, now at Rs 97,324 per kilogram.
In the bustling heart of New Delhi, gold prices soared on Thursday, climbing a staggering Rs 888 to reach an eye-watering Rs 95,610 per 10 grams. This massive surge was due to enthusiastic speculation and robust demand from traders, according to analysts. On the Multi Commodity Exchange, gold contracts for June delivery jumped by a significant 0.94% to reach this record-breaking figure, with a total of 17,780 lots traded.
Meanwhile, at the same exchange, silver prices took a tumble, losing ground by Rs 475 to settle at Rs 97,324 per kilogram. This sell-off was primarily driven by participating traders shrinking their bets, analysts suggested. In the overseas markets, silver futures saw a decline of 0.77%, trading at USD 33.31 per ounce in New York.
Globally, gold prices are influenced by a combination of factors, such as central bank policies, political and economic risks, and market trends. Anticipated U.S. and Chinese interest rate cuts are making gold more appealing as non-yielding assets, with prices currently hovering around $3,318/oz. Central banks in emerging markets, such as China and India, are also building up reserves to lessen their reliance on the dollar, which is creating a demand floor.
Trade tensions, recession fears, and global uncertainty are driving demand for safe-haven assets, including gold, pushing its prices upward. Analysts have projected gold prices to surpass $4,000/oz by late 2025, provided current trends continue.
Silver, on the other hand, is heavily influenced by industrial demand, green tech, and electronics manufacturing, as well as market dynamics such as the gold-silver ratio and technical support levels. Silver is trading 40% below its peak against gold's record highs, leading many to believe it offers greater upside potential. Despite a 13% drop in recent weeks, analysts are optimistic about the long-term price trajectory of silver, with a predicted need for a 56% surge from current levels to reach its 1980's $50 peak.
However, potential risks to the gold and silver markets include unexpected interest rate hikes, reduced central bank buying, and trade wars. Policymakers' moves and geopolitical developments can have a significant impact on the prices of precious metals.
- Speculators in the finance industry are keeping a close eye on the futures of both gold and silver, particularly in Delhi, due to the robust demand and soaring prices of gold being recorded.
- While the gold industry continues to flourish, silver is experiencing a different trend, with its prices taking a tumble and analysts suggesting the sell-off is primarily due to traders reducing their bets.
- The futures market for silver is influenced by a diverse range of factors, including industrial demand, green tech, and electronics manufacturing, in addition to traditional market dynamics and the gold-silver ratio.
