Indian gold futures hit a fresh all-time high of Rs 61,490 per 10 grams on Thursday, tracking gains in overseas markets. The surge in gold prices was caused by a drop in the dollar following the US Federal Reserve’s statement hinting at a halt in interest rate increases.
Additionally, international gold prices also reached an all-time high of $2,081.80 per troy ounce. As per experts, dip buying is expected to continue on safe-haven demand and a possible pause in the US rate hike. As of now, domestic gold futures have risen to 61,490 rupees per 10 grams, up nearly 12% so far in 2023, according to.
According to Deveya Gaglani of Axis Securities, quoted by Reuters, “Fed’s hint of a potential rate hike pause in the next meeting provided a favorable environment for gold prices, as the dollar index drifted lower towards the $101 level and bond yields remained under pressure, resulting in upward momentum for gold.
Moving away from its previous language in March that called for “some additional policy firming,” the FOMC stated in its May policy statement that it “will closely monitor incoming information and assess the implications for monetary policy,” indicating that a pause on hikes is possible for June.