Standard gold price in India on Thursday recorded the highest single-day gain of 2.21 per cent in recent years, following a sharp spurt in its prices in global markets on the US Fed’s dovish stance on economic growth in the United States.
The data compiled by the India Bullion and Jewellers Association (IBJA) showed standard gold price at Rs 33,559 per 10 gm in Zaveri Bazaar here on Thursday, barely 0.3 per cent lower than the all-time high of Rs 33, 716 in February this year. On Wednesday, Standard gold price in Zaveri Bazaar was Rs 32,851 per 10 gm.
Oil prices, too, jumped on Thursday but on rising US-Iran tensions, with gains accelerating on a cryptic tweet by American President Donald Trump after Iranian forces shot down a US spy drone. At 8.35 pm IST, US benchmark West Texas Intermediate climbed 6.3 per cent to $57.13 a barrel, while Brent futures in London gained 4.7 per cent to $64.69 a barrel.
Base metals remained resilient to trade, with a marginal gain on the London Metal Exchange (LME).
“The sharp spurt in gold prices can be attributed to the dollar’s weakness. The US Fed in its last meeting changed the narrative. So far, the narrative has been that the dollar interest rate is going up. But, the Fed is now turning dovish due to the ongoing trade talks, with the delay affecting the US economy. Thus, the Fed signals problems in the US economy with steady interest rate cuts. Consequently, crude and base metals did not follow the speed of surge in gold prices,” said Gnanasekar Thiagarajan, director, Commtrendz.
Courtesy - Business Standard
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