Gold, silver price on 08 April 2024: Yellow metal surpasses Rs 70,000 mark, silver exceeds Rs 80,000 barrier

Gold prices opened on the Multi Commodity Exchange (MCX) on Monday at Rs 70,999 per 10 grams and hit an intraday low of Rs 70,862. In the international market, prices hovered around $2,339.72 per ounce.

Meanwhile, silver opened at Rs 81,093 per kg and hit an intraday low of Rs 80,030 on the MCX. In the international market, the price hovered around $27.83 per ounce.

Deveya Gaglani, Research Analyst - Commodities, Axis Securities, said, "Gold prices ventured into unchartered territory above the Rs 70,000 level for the first time in history. Prices made a new lifetime high of Rs 70699 after the NFP data print from the USA."

"Speculative buying from the Fund manager and Global Central Bank, piling on the Gold reserve, was a catalyst for its parabolic move. Prices dazzled investors by recording an 11% return this year on the back of increased geopolitical tension in the Middle East and the possibility of multiple rate cuts by the Fed this year," said Gaglani.

"Traders will be eyeing the inflation data print this week, which may impact Gold prices as it may influence the Fed rate cut decision. Near-term trends remain strong for gold prices as long as they trade above Rs 69,000 on the weekly chart."

However, after reaching a record high, Manav Modi, Analyst, Commodity and Currency, MOFSL, said, "Gold prices traded steady as dollar and treasury yields held firm after strong US data heightened doubts on whether the would deliver three interest rate cuts this year."

The US job growth blew past expectations in March and wages increased at a steady clip, suggesting the economy ended 1st quarter on solid ground and potentially delaying anticipated Federal Reserve interest rate cuts this year.

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Employers added 303,000 jobs in March, in a further sign of a buoyant labour market, against the expectations of 200k, while the unemployment rate edged down to 3.8%, compared with a predicted 3.9%. The dollar index continues to hover above the 104 mark, while US 10Y yields are also not giving up strength, marked above 4.4%.

"Bets for a rate cut in the month of June have dropped below 50%, weighing safe haven assets. However, significant increases in the geo-political tensions and natural calamities, i.e. tremors felt in some parts of the world, have increased uncertainties in the market supporting the gold and silver prices," said Modi.