Gold Prices Hit Rs 71,000; Why The Sudden Spurt?

New Delhi: Navratri and Gudi Padwa, the Hindu festivals considered auspicious for buying gold are here and the prices of the yellow metal in India have hit a record high of Rs 71,080. Silver too scaled a new peak of Rs 82,064 per kg. Gold is expected to see another price hike when the interest rates fall which investors believe could happen later this year, News18 reported.

The bullion rate has seen a 14% increase since March. Geopolitical tensions, wars and grim economic outlook and the timing of the rate cuts by the Federal Reserve have added to the sudden record highs in gold prices. Spot gold in the Chicago Mercantile Exchange rose to $2,344 per ounce, while US gold futures shot up to $2,361 despite expectations of the US Federal Reserve delaying the interest rate cuts after robust US job growth.

World Gold Council’s Regional CEO (India), Sachin Jain, said gold prices touched a historic high despite near stagnant demand due to a fall in jewellery demand in the March quarter in both rural and urban centres, The Hindu reported.