Why are gold, silver prices flirting with record highs despite resilient US dollar? — explained with 5 reasons

livemint.com:

Gold and silver rates today: Despite the rise in the US dollar rates, gold and silver prices continue flirting with record highs throughout the week on US Fed rate cut buzz. Gold futures contract on the Multi Commodity Exchange (MCX) for June 2024 expiry climbed to a new peak of ₹70,699 per 10 gm on Friday. Silver rates too climbed to a new peak of ₹81,030 per kg on the last session of the week gone by.

In the international market, spot gold price finished at the 2,329 per ounce level after touching a new high of $2,230.47 per ounce whereas silver price ended 2.10 percent higher at the $27.46 per ounce mark. According to commodity market experts, gold and silver prices have rallied throughout the week as the market is expecting the end of a high-interest rate regime in the near term. They listed 5 major reasons that have been fueling precious metal prices despite the strong US dollar index.

Those 5 reasons are the bets of the US Fed rate cut, rising geo-political risk, aggressive buying by China, uncertainties ahead of general elections in major economies, and depreciating Indian National Rupee (INR). On why gold and silver prices are skyrocketing, Sugandha Sachdeva, Founder of SS WealthStreet said, "It's been a remarkable rally in gold price as it scaled to another record high of ₹70,699 per 10 gm and logged gains for the third consecutive week despite resilient US dollar rates. The key variable propelling prices on the higher trajectory has been the rising bets about monetary policy easing by the US Fed and the worsening geopolitical situation in the Middle East region.