The gold rate today surpassed stiff resistance at $1,275, trading at $1,278 overnight. The long-term outlook for gold is bullish, with many investors pegging their hopes at crossing over the $1,300 barrier.
Meanwhile in Orissa, India, local prices have been keeping pace with global trends. Both 22K gold and 24K gold have been on the rise, trading at Rs. 23,520 ($334.64) and Rs. 24,696 ($351.37) per 8 grams respectively. Prices were last checked Thursday morning. There was a modest increase in value from Tuesday’s Rs. 23,456 ($333.73) and Rs. 24,632 ($350.46) respectively.
The domestic jewellery industry in Orissa will stand to gain from the global pressures on the bullion. The year 2019 looks promising for investors hoping to benefit from rising gold prices. The US Federal Reserve has reduced the number of interest rate hikes from 3 to 2, fearing economic slowdowns in terms of growth.
That being said, there are many hedge fund managers who remain skeptical about gold’s growth, and this should only fuel the prices to climb higher still. The rest of the precious metals market is also pulling its own weight, supported in part by the bullish gains of gold. Thursday’s platinum prices are reported at $801.60 per ounce while palladium is trading for $1,257.00 per ounce.
Both platinum and palladium are rare precious metals that have found application in the automotive industry in the creation of catalytic convertors. Both have a crucial role to play in minimizing greenhouse gas emissions and curbing the release of poisonous carbon monoxide.
Among other applications for palladium include the domestic jewelry, electronics, and dentistry. The silver white precious metal is gaining favor with investors on account of its dwindling supply and increasing demand. This will remain so for the foreseeable future on account of world governments pushing for more stringent regulations to mitigate the emission of toxic gases into the atmosphere.
Current events supporting the growth of the precious metals market include the ongoing trade wars between China and the US, hiked interest rates by the US Federal Reserve, and the partial shutdown of the US government by President Donald Trump. The position of the US dollar is weakening against other fiat currencies, leaving investors scrambling to find refuge in safe haven assets such as gold.
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