The Sensex and Nifty rose to new highs as gold and silver continued their upward rally led by global uncertainties and elevated gold buying by central banks. The dollar devaluation has also contributed to the rise in the yellow metal’s price.
Gold, silver and stocks at new highs. (Photo credit: Reuters/ Pexels)
New Delhi: Investors were in for a bonanza on Tuesday as the stock market, gold and silver prices hit new highs, based on bullish global cues from rising geopolitical tensions in the Middle East. The Sensex was at 74,795.41, up 52.91 points, or 0.07 per cent at 1;#7 pm, while the Nifty was at 22,667.40, up 1.10 points on Tuesday.
Gold prices in Delhi were up Rs 110 per 10 gm for 24K gold, taking the total price to Rs 71,880 per 10 gm. The yellow metal’s price surged from Rs 637 per 10 gm to Rs 71,080 per 10 gm on Monday.
Silver prices touched a new high of Rs 84,500 per kg on Tuesday after closing Rs 1,381 per kg higher at Rs 82,109 per kg on Monday, according to Goodreturns.
The commodity is outperforming gold since investors are hedging their bets through investment in these commodities, said Mobius Emerging Opportunity fund manager Mark Mobius. Dollar devaluation has also played a part in the gold and silver price spike, he added.
Gold prices are on the incline after US March payroll data showed robust growth, increasing expectations to a rate cut by the US Fed. Global central bank buying of golf amid geopolitical uncertainties in the Middle East is also a major contributor to the price surge, according to Jateen Trivedi, VP Research Analyst at LKP Securities.
“The key driver of the outlook for gold prices for the past year has been Federal Reserve policy, with rising optimism surrounding the central bank inching closer to the much-anticipated pivot fuelling the precious metal’s rally,”according to ING strategists Warren Patterson and Eva Manthey.
To be sure, the gold rally is expected to correct at around Rs 69,500 levels during the ongoing week, Trivedi added.
Sensex, Nifty at new highs
The Sensex was at 74,795.41, up 52.91 points, or 0.07 per cent at 1;#7 pm, while the Nifty was at 22,667.40, up 1.10 points on Tuesday. Metals, real estate and banking sectors drove stock market gains. Block deals were seen in Axis Bank and Gland Pharma.
The Sensex briefly jumped 381.78 points to 75,124.28 while the Nifty rise 99 points to 22,765.30. Mobius said he remained bullish on the Indian stock market and expects the Sensex to touch 1 lakh before 2028.