Gold price touches new peak as US dollar index hits three month low. Should you buy in this rally?
₹62,602 per 10 gm levels, which is its new peak on the commodity exchange. However, profit taking soon triggered and the yellow metal price touched intraday low of ₹62,431 per 10 gm levels within few minutes of commodity market's opening bell on Wednesday. In international market, spot gold price is oscillating around $2,047 per ounce levels.
Silver rate today on MCX opened higher at ₹ 75,326 per kg levels and went on to hit intraday high of ₹75,600 per kg levels. In international market, spot silver price today is around $25 per ounce levels. Sensex Today | Share Market Live Updates: Nifty hits 20K, Sensex soars Speaking on the reasons that has fueled gold and silver price rally, Anuj Gupta, Head — Commodity & Currency at HDFC Securities said, “Gold and silver prices are ascending due to continuous weakness in the US dollar and depreciating US 10-year bond yield.
US dollar index has touched three month low whereas US 10-year bond yield has come close to 4 per cent levels after climbing to 5 per cent levels." Also Read: Rupee rises 5 paise to 83.28 against US dollar in early trade “Gold price surged on dip in the US yields as traders construed Fedspeak affirming their notion of peak Fed rate to be followed by quick rate cuts. The most notable remark came from Federal Reserve Governor Waller, a known hawk, who said that he is confident enough that the current monetary policy is well positioned to slow the economy and get inflation back to 2%. He touched upon the possibility of lowering policy rates should inflation fall for several months.
His comments weighed on yields and consequently on the US Dollar Index. Recent economic data have been mostly soft which suggests that the Fed is done with hiking rates. Financial
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