String Of New Records: Gold Prices Leap Yet Again After Single Day Gain Of Rs 1330, Why?

Gold prices have been witnessing more rise than fall in last few days. Yellow metal jumped by Rs 1640 in 2 days except Sunday when prices remained stable. Gold prices recorded biggest jump this month on April 6, 2024 when 24k yellow metal prices soared by Rs 1310 to Rs 71,290/10 grams and 22k gold prices surged by Rs 1200 to Rs 65,350/10 grams. Today 22 carat gold prices made another leap by Rs 300 to Rs 65,650 and 24 carat yellow metal soared by Rs 330 to Rs 71,620 per 10 grams.

Why Gold Prices Have Been Soaring?

Gold prices extended their record surge on April 8, 2024 steered by speculative buying and continuous tensions in the Middle East, which overshadowed robust U.S. payrolls number last week. Spot gold was up 0.3% at $2,335.73 per ounce, as of 0646 GMT, after soaring to a record high of $2,353.79 earlier in the session. U.S. gold futures gained 0.4% to $2,354.50, according to Reuters.

"If you look at futures pricing, we're seeing indications now that there's a bit of momentum chasing in the market ... to an extent we're seeing a little bit of excessive optimism about the outlook for gold at the current level," said Kyle Rodda, a financial market analyst at Capital.com.

Geopolitical tensions in the Middle East could be another driving force for gold, Rodda added. Robust central bank buying, safe-haven inflows on elevated geopolitical risks, and demand from momentum-following funds have fuelled bullion's 12% gain so far this year, added the Reuters report.

Rahul Kalantri, VP Commodities at Mehta Equities Ltd said, "Gold could potentially test $2,355 per ounce. Gold finds support levels at $2,298-$2,278 per ounce, with resistance at $2,331-$2,348 per ounce. In India, gold is supported at ₹70,380 per 10 grams and ₹70,120 per 10 grams, with resistance at ₹70,880 per 10 grams and ₹71,120 per 10 grams."

Yellow metal prices In 4 major metropolitan cities of India on April 8, 2024:

Gold Price Chennai: Price of 10 grams of 22 carat of gold price Chennai today is Rs 66,000 and cost of 10 grams of 24 carat gold is Rs 72,650.

Yellow Metal Price Mumbai: Price of 10 grams of 22 carat gold in Mumbai on April 8 is Rs 65,650 and cost of 10 grams of 24 carat yellow metal is Rs 71,260.

Precious Metal Price Delhi: Price of 10 grams of 22 carat yellow metal in Delhi on April 8 is Rs 65,800 and cost of 10 grams of 24 carat gold is Rs 71,770.

Gold Price Kolkata: Price of 10 grams of 22 carat of yellow metal in Kolkata on April 8, 2024 is Rs 65,650 and cost of 24 carat of 10 grams gold is Rs 71,620.

Silver prices India too witnessed rally today. Price of 1 kg silver in India today is Rs 84,500 after the gain of Rs 1000.