Mon. May 20th, 2024

Gold Prices (XAU/USD) Climbs To A Record High Near $2430 During The Early Asian Session On Friday.

Gold Prices (XAU/USD) Climbs To A Record High Near $2430 During The Early Asian Session On Friday.Gold Prices (XAU/USD) Climbs To A Record High Near $2430 During The Early Asian Session On Friday.

Gold prices (XAU/USD) climbs to a record high near $2430 during the early Asian session on Friday.

The market expectation that the US Federal Reserve (Fed) will cut its benchmark interest rate this year is the main driver for the yellow metal.

Gold Prices (XAU/USD) Today High $2430 All-Time

Additionally, the gold purchase by the Chinese central bank and the ongoing geopolitical tensions in the Middle East boost safe-haven flows, benefiting the gold price.

Analysts believe the US Fed to maintain its projection of three 25-basis points (bps) rate cuts this year despite concerns over recent higher-than-expected inflation reports.

Gold Prices (XAU/USD) Climbs To A Record High Near $2430 During The Early Asian Session On Friday.

The People’s Bank of China (PBoC) purchased gold for the 17th consecutive month in March, adding 160,000 ounces to its reserves of 72.74 million troy ounces, per Reuters. Chinese investors have shifted to gold as an alternative asset despite deteriorates in the property sector and equities prices in recent years.

Gold futures on India’s Multi Commodity Exchange (MCX) rose to Rs 72,423 per 10 grams on Friday for June 5 delivery, tracking the rally in the international market which saw the price of the precious metal soar to a new lifetime high at $2,395.29 per ounce.

Gold futures on MCX recorded an increase of Rs 779 per 10 grams which is 1.09 per cent above the previous trading session’s closing price of Rs 71,644.

There was some variation in the retail gold prices in major cities across the country with the price in Delhi hovering at around Rs 72,380 per 10 grams for 24-carat gold, while in Mumbai, the price was 72,230. The price of gold was the highest in Chennai at Rs 73,370 per 10 grams while it was hovering around Rs 72,230 in Bengaluru and Kolkata.

Gold prices continue to peak in the international market as central banks of various countries are resorting to large purchases of the yellow metal since it is seen as a safe-haven asset amid escalating geopolitical tensions in the Middle East and the Russia-Ukraine war.

Gold prices have shot up by around 15 per cent this year and the firm trend was also reflected in US gold futures which rose 1.2 per cent to $2,401.80 on Friday.

India is the second largest importer of gold after China and rising international prices have a direct bearing on domestic prices.

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