the US Federal Reserve's dovish outlook. The US Federal Reserve signalled to put an end to its interest rate-hiking policy and gave a hint of lower borrowing costs in 2024. Spot gold rose 1% at $2,046.69 per ounce as of 9:46 a.m.
ET (1446 GMT), after surging 2.4% on Wednesday. U.S. gold futures jumped 3.2%, to $2,061.60, according to news agency Reuters.
The market experts have given a positive outlook for gold with a better target price. "We retain a positive outlook for gold, targeting a price of $2,250 per ounce by the end of 2024," UBS analyst Giovanni Staunovo told Reuters. Seventeen of 19 Fed officials projected lower interest rates by end-2024 after the US central bank kept interest rates steady for the third meeting in a row.
The lower value of the dollar resulted in the availability of gold for non-dollar buyers at cheaper rates. While the U.S. benchmark 10-year yields dropped to their lowest levels since late July.
Lower U.S. interest rates put pressure on the dollar and bond yields, and increase the appeal of non-yielding bullion. Back home, gold price jumped ₹1,130 to ₹62,950 per 10 grams in the national capital on Thursday amid strong trends in the global markets, according to HDFC Securities.
The precious metal had ended at ₹61,820 per 10 grams in the previous close. Silver also rallied ₹2,350 to ₹77,400 per kilogram, while it had closed at ₹75,050 per kg in the previous trade. On the Multi Commodity Exchange (MCX), gold futures due for a February 5 delivery, were last seen trading higher by ₹1,601 or 2.62 percent at ₹62,800, having swung between ₹61,391 and ₹62,880 during the session so far, compared to their previous close of ₹61,199.
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