MUMBAI: Gold and silver exchange traded funds (ETFs) rebounded sharply on Friday, recovering the deep cuts yesterday. Some of these ETFs rallied up to 30% when some like the Tata silver ETF surged 17% after it tanked 24% yesterday. But ETFs are still away from their 52-week highs hit on Wednesday.
The recovery was primarily due to the new records—while gold touched $4,970/oz (Rs 1,59,200/10 grams) on the CME earlier in the day, the white metal roared to sniff at $100/oz, and peaked early day trade at $99.22 or Rs 3,44,00/kg.
The rally in the global market is surprising as this came in spite of that thaw in the global geopolitical turmoil after Donal Trump back down from his bid to forcefully annex Greenland yesterday. This is also ignoring the fact that a resolution to the Ukraine war looks more realistic than even with the first-ever trilateral meeting between the warring nations and the US are scheduled for Friday in the UAE.
Both the metals are on course to hit the $5,000 and $100/oz mark anytime from now having already rallied more than 30% and 37% respectively.
In the domestic market, gold February futures rallied to command Rs 157,332/10 grams, up Rs 991 or 0.63% in early trade, and March silver was fetched Rs 3,33,100/kg or Rs 5,811 or 0 1.78% over Thursday’s closing price.
Jefferies has predicted gold prices at to scale to $6,600 per ounce this year, UBS has its target at $5,400; JP Morgan at $5,050; and BofA and ANZ at $5,000 each. But their early 20226 targets have already been met in the first three weeks of the year.