The price of gold surged to an unprecedented peak on Thursday, reaching Rs 69,908 per 10 gm on India's Multi Commodity Exchange (MCX). This new high came as the precious metal continued its streak of setting records in the international market for the seventh consecutive trading day.
At the start of morning trading, gold futures contracts for June 2024 on the MCX opened at Rs 69,868 per 10 gm. However, propelled by news of gold reaching $2,323.70 per ounce in the global market, prices quickly soared to Rs 69,908 per 10 gm level.
Over the past seven trading sessions, gold prices have consistently reached new highs. Analysts attribute this latest surge to Federal Reserve Chairman Jerome Powell's recent remarks, hinting at a potential interest rate cut in the near future. Lower interest rates tend to diminish the appeal of financial investments, prompting investors to turn to gold.
Gold has seen a significant uptick of nearly 11 per cent this year, largely due to its status as a safe haven amid geopolitical tensions and economic uncertainties. Escalating conflicts such as the Israel-Hamas dispute and the Russia-Ukraine war have spurred demand for the precious metal.
Furthermore, central banks, led by China, have been bolstering gold reserves, contributing to the upward trajectory of prices.
In India, the demand for gold remains robust, particularly in the context of weddings where it is traditionally exchanged in large quantities. However, jewelers express concerns that the soaring prices may dampen consumer demand, a sentiment reflected in declining imports of the metal.
