Gold rate today: On account of diminishing expectations of the US Fed rate hike, gold price climbed to a new peak of ₹61,914 per 10 gm levels on Multi Commodity Exchange (MCX) in the week gone by. However, profit booking triggered on higher levels and finally MCX gold rate ended at ₹60,745 per 10 gm levels on Friday, logging weekly gain of 1.62 per cent.
Silver price on MCX ended at ₹73,161 per kg levels, clocking a substantial 4.53 per cent weekly gain last week. According to commodity market experts, gold and silver prices gained momentum after soft US CPI data and Moody's recent decision to downgrade US credit rating from stable to negative worked as a catalyst for profit booking trigger in currency and bond market.
This led to sharp decline in US dollar index and US treasury yields as investors started shifting money from currency and bond market to other assets including gold. Also read: Oil headed for 4th weekly loss on demand concerns; Brent at $78/bbl However, commodity market experts maintained that gold price today is facing hurdle at ₹62,000 levels while silver rate today is facing resistance at ₹73,500 per kg levels.
Further upside in gold and silver prices can be expected only after a decisive breach of these hurdles. Speaking on gold price rally in the week gone by, market expert Sugandha Sachdeva said, "Gold prices surged to a new record of ₹61,914 per 10gm this week, marking a weekly gain of 1.62 per cent, while silver experienced a substantial increase of 4.53 per cent.
The rally in both the precious metals was fueled by diminishing expectations of further rate hikes by the US Fed. Following a correction that brought gold prices to around ₹59,500 per 10gm at the beginning of the week, the yellow metal
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