The weakness of the Indian National Rupee (INR) and the US dollar (USD) caused gold and silver prices to soar today.
Current rates for gold and silver: The precious metals saw significant buying in both the Indian and international markets as a result of the decline in the US dollar (USD), the Indian national rupee (INR), and US bond yields. Today, MCX gold prices saw significant purchasing and recorded an intraday increase of ₹1,874 per 10 grams, peaking at ₹1,35,496 per 10 grams. Silver prices on MCX also saw an intraday increase of ₹6,195 today, peaking at ₹1,99,046 per kilogram. The COMEX gold price hit an intraday high of $4,384 per ounce on Monday, surging nearly $56 per ounce in the global market.
Bullion specialists claim that both domestic and foreign causes are contributing to the current increasing trend in gold and silver prices. The Indian Rupee has once again reached a new low of 90.70 against the US dollar in the domestic trigger. But this has happened when the US dollar index has fallen below 98. Therefore, purchases of gold and silver on various exchanges were stimulated by the depreciation of both local and foreign currencies. They stated that the surge and today's gold and silver rates were also supported by the declining yield on US Treasury bonds.
Focus: USD vs. INR
Anuj Gupta, Director at Ya Wealth, discussed the main factor driving silver and gold prices today, saying, "Gold and silver rates today witnessed strong buying as both USD and the INR witnessed sharp selling throughout the day." The Indian Rupee reached a new low of 90.70 versus the USD, while the US Dollar Index fell below 98 levels. This encouraged purchases of gold and silver in India and outside. However, the increase in the price of gold and silver was also somewhat supported by declining yields on US Treasury bonds. The yield on US Treasury notes has dropped from 4% to 3.5% in recent sessions, which has caused money to move from the bond and FX markets to the precious metals."
Delay in the US-India trade agreement
Jateen Trivedi, VP Research - Commodity & Currency at LKP Securities, discussed the USD vs. INR forecast, saying, "The rupee weakened by 28 paise to 90.70 as delays in the India–US trade deal and continued FII selling kept pressure on the currency." The import bill has been further hurt by rising gold and silver prices, which has made the rupee's depreciation worse. In the near future, the currency is probably going to move between 90.00 and 91.25.
According to BofA analysts, the Indian rupee is still reliant on portfolio flows, which are influenced in part by Trump's tariffs. "The completion of the India-US trade agreement, which is anticipated to lower tariffs, would be crucial in lowering equities investor concern.
Current gold prices: Significant levels
Regarding the near-term prognosis for gold prices, Jateen Trivedi stated, "Gold prices scaled even higher as international spot gold surged towards the $4,350 zone, triggering a strong rally in the domestic market." The MCX gold rate reached a new lifetime high of around ₹1,35,250 today, reflecting the strength of the world economy with a sudden gain of about ₹1,700. The change was prompted by renewed demand for safe havens and anticipation of impending US economic data. This week's scheduled Core PCE Price Index and Non-Farm Payrolls have firmly moved attention to US macroeconomic indicators, which are predicted to maintain high volatility. The current range of gold prices is greater, ranging from ₹1,33,000 to ₹1,36,500.
"Gold prices are currently facing a barrier at $4,400 per ounce, while support is set at $4,280 per ounce in the global market. In a similar vein, the silver price has created a critical support level at $58 per ounce and immediate support at $60 per ounce. Silver prices are encountering resistance near the $64 mark on the upper side. We can anticipate silver prices reaching $67 per ounce levels shortly if they break above this level, according to Anuj Gupta.
Anuj Gupta continued, "The MCX silver rate has strong support at ₹1,90,000 per kg levels, but it has immediate support placed at ₹1,93,000 levels today."
0 Comments