Gold prices have reached a new record high today. What’s driving the rally?

“The US Fed raised interest rates by 25 bps at yesterday’s FOMC meeting, signaling a soft stance on rate hikes. This has brought down the US dollar rates to a 9-month low and this is also one of the reasons for the rise in gold prices in the domestic and international markets.”

spot in the international market Sleep After hitting its highest level since April 2022 earlier in the session, it rose to $1,951.79 an ounce. The Fed hiked rates by a quarter-percentage-point on Wednesday after a year of large hikes. However, Powell cautioned against further tightening of monetary policy given progress on deflation, which he said was in its early stages. Gold benefits in a low interest rate environment, as it reduces the opportunity cost of holding non-yielding bullion.

The reason for the rise in gold and silver prices mcxMarket expert Sugandha Sachdeva said, “Budget 2023 proposes to increase duty on silver bars, rods and articles to bring it at par with gold and platinum bars and rods. Import duty on silver to be increased from 7.5% to 10%.” % Has been done.” A net duty of 15% was levied, along with a 5% agriculture and infrastructure cess. Social welfare surcharge has been removed. In addition, the duty on silver cord has been increased from 6% to 10%, taking the total duty to 14.35%. All imported precious metal jewelery and articles (gold/silver/platinum) now attract an import duty of 25%, as against 20% earlier. Separately, capital gains tax has been exempted for converting physical gold into EGR, which is another step towards promoting. Financialization of Gold.

The views and recommendations given above are those of individual analysts or broking companies and not of Mint.

(with inputs from agencies)