In view of positive global cues, gold and silver prices rose in the special Muhurta trading session on MCX. Gold futures jump 1.5% on MCX ₹47,571 per 10 grams while silver prices jumped ₹by 2.8% ₹64,224 per kg.
In the US, gold futures rose 1.8% to $1,795.70 an ounce, reversing from a three-week low on Wednesday. analysts say Sleep There was some relief from the fact that there was no strong signal from the Fed regarding future rate hikes. Spot silver rose 1.2% to $23.79 an ounce.
US Central said on Wednesday it would begin easing its massive bond-buying program starting this month, but indicated it would be patient on raising interest rates. Today, the Bank of England defied expectations of a more stringent policy by keeping interest rates intact on Thursday, dashing hopes of a hike, which has made it the first of the world’s major central banks to raise rates after the pandemic. made. Global stock markets touched record highs today.
Ultra-loose US monetary policy has helped gold rise sharply since the financial crisis of the late 2000s, low interest rates have cut the opportunity cost of holding non-yielding assets, and inflation fears The demand for rescue is increasing.
Lower incentives and higher interest rates raise government bond yields, increasing the opportunity cost of gold, which pays no interest.
Analysts also said festive buying in India is also supporting the precious metal.
“We are expecting 30-40 per cent growth in sales volume by Diwali as compared to last year. With the upcoming wedding season, we expect the retail demand for gold and other gems and jewelery products to traverse a high growth trajectory,” said Ahmed MP, President, Malabar Gold & Diamonds.
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