Gold prices hit fresh high at Rs 86,875 on safe-haven demand

NEW DELHI: Gold prices continued upward momentum with April futures hitting an all-time high of Rs 86,875 per 10 grams on Thursday, at the multi commodity exchange (MCX).
The yellow metal marked a rise of 0.21 per cent or Rs 189, while silver May futures traded at Rs 99,389 per kilogram, down 0.09 per cent or Rs 87.
Gold gained after due to investors' search for a safe haven amid US trade tariffs and slowing global growth. In March alone, gold prices surged by Rs 2,600 per 10 grams, while silver has climbed by Rs 5,061 per kilogram.
On Wednesday, both precious metals ended on a positive note in domestic and international markets. The April gold contract settled at Rs 86,686 per 10 grams, up 0.62 per cent, while silver May futures closed at Rs 99,476 per kilogram, rising 1.37 per cent.
In the international market, gold hit a lifetime high as the result of a persistent safe-haven demand, silver also hit a three-week high.
Market sentiment and US inflation data
The latest US inflation data met expectations despite being slightly lower than the previous month. This hinted at a positive signal for the market suggesting that the Federal Reserve may resort to being less aggressive than expected.
This hinted that the Fed may adopt a less aggressive policy for interest rates. Manoj Kumar Jain of Prithvifinmart Commodity Research told ET, “We expect gold and silver prices to remain volatile this week amid volatility in the dollar index, the US trade was, and ahead of the U.S. PPI data.”
Moreover, Jain added that the two precious metals would stay above their key support levels of $2,840 and $31.40 per troy ounce, in the international markets, by the end of the week.
On Thursday, the US Dollar Index (DXY) was lingering around 103.57, down 0.04 per cent.
Gold and silver outlook
Gold prices across Indian cities