Gold prices rallied nearly to record highs

May 05, 2023

In the context of zooming of high gold price Colin Shah, MD, Kama Jewelry suggest his views on the gold and silver prices at a record high! He said, gold prices have rallied nearly to record highs. Domestically, it has touched Rs 61,498/10 gm, with silver at Rs 77,500/kg. Internationally too, the precious metals are trading at record highs, with gold hitting $2080 and silver at $26, respectively.

The rally in the prices of precious metals is largely due to the developments in the US-Fed meeting, the debt ceiling, and concerns around slowing economic growth affecting the USD and ultimately, the gold/silver prices.

The hiking of rates by the US Fed has put pressure on the USD, and indications of pausing and a likely mild recession in the later part of 2023 have provided support to gold prices.

The US government and the Treasury Department have raised their concerns about the deadlock and delay on the debt ceiling issue, and the slowing economic growth has created growth uncertainties, thereby pushing prices on the higher side.

The current setup has increased the appeal of safe haven investments like gold and silver. International gold prices are likely to hit $2090–2100/oz and Rs 62,500–62,750/10 gm and silver prices between Rs 77,600-77,800 and $26.50-27/oz in the short to medium term.

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