New Delhi, May 17 (PTI) Extending the record-breaking run to the second day in a row, silver prices hit lifetime high level of Rs 89,000 in the local market on Friday, even as gold prices fell Rs 150 to Rs 73,900 per 10 grams in line with firm trends in the overseas markets.
According to HDFC Securities, silver prices jumped Rs 300 to Rs 89,000 per kg in the national capital. It had closed at Rs 88,700 per kg in the previous session.
Meanwhile, gold prices declined Rs 150 to Rs 73,900 per 10 grams. In the previous session, it had settled at Rs 74,050.
“Gold prices retreated on Friday as the US dollar and US Treasury yields recovered from multi-week lows. The US dollar index is currently quoting higher by 0.22 per cent against the previous close.
“Traders reassessed the future path of interest rates, leading to a recovery in the US dollar and yields, following the US Fed’s policymakers’ emphasis on the need for US inflation to decrease further to justify lower borrowing costs and indicating that borrowing costs should remain higher for an extended period,” Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.
In the international markets, spot gold at Comex was trading at USD 2,380 per ounce, down USD 6 from the previous close.
“Gold is seen trading steady to firm so far in the session and is likely to end the week in positive, as the recent economic data releases from US have showing signs of slowdown in the economic activity, while the inflation has again started cooling-off raising bets for an early interest rate cut by the US Federal Reserve,” Pranav Mer, Vice President of Research (Commodity & Currency) at BlinkX and JM Financial Services, said.
However, silver was trading higher at USD 29.65 per ounce. It had finished at USD 29.55 per ounce in the previous trade.
“At current levels, gold appears slightly overbought. The uncertainty surrounding the timing of interest rate cuts and the potential for higher rates for longer in the US are factors that may keep dollar buying stable,” Jateen Trivedi, VP Research Analyst of Commodity and Currency at LKP Securities, said. PTI HG TRB
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