Gold prices soar to new high for seventh day in a row

Gold prices, on Thursday, soared to a new lifetime high of Rs 69,908 per 10 gm on India’s Multi Commodity Exchange (MCX) after the price of the precious metal scaled a new all-time high in the international market for the seventh consecutive trading day.

Gold futures contract on the MCX for June 2024 expiry opened at Rs 69,868 per 10 gm in morning trade, after which it soared to Rs 69,908 per 10 gm level following news of the precious metal scaling high of $2,323.70 per ounce in the international market.

Gold prices have now been scaling record highs over each of the last seven trading sessions. According to market experts, the latest surge came after US Fed Chairman Jerome Powell’s speech on Wednesday that appeared to confirm the interest rate cut in the near-term. Lower interest rates make investments in financial instruments less lucrative and this tends to trigger the switch to buying gold.

Gold prices have gained close to 11 per cent so far this year as it is seen as a safe investment amid geopolitical and economic uncertainty in the wake of escalating tensions triggered by the Israel-Hamas conflict and the Russia-Ukraine war.

Central banks of various countries, led by China, have also been buying gold in large quantities which has contributed to the price rise.

The demand for gold in the Indian market is fuelled by the need for the precious metal in weddings as it is gifted to brides and grooms in large quantities as jewellery. However, jewellers are of the view that the soaring gold prices are dampening this demand. This is also reflected in the declining imports of the precious metal, according to them.