According to Ravindra Rao, CMT, EPAT VP-Head Commodities Research, Kotak Securities Ltd, the western financial crisis upended global markets, pushing domestic gold prices beyond Rs 60,000 per 10 kilos.
In the last session, the precious metal concluded at Rs 58,700 per 10 grammes.
According to HDFC Securities, gold prices rose Rs 1,400 to a lifetime high of Rs 60,100 per 10 kilos in New Delhi on March 20 on strong global trends.
In the last session, the precious metal concluded at Rs 58,700 per 10 grammes.
Silver increased by Rs 1,860 to Rs 69,340 per kilogramme.
“In the Delhi markets, spot gold prices traded at Rs 60,100 per 10 kilos, up Rs 1,400 per 10 grammes,” said Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities.
“Bullions continue to increase, with gold hitting a fresh lifetime high of above Rs 60,000 on the domestic front,” Navneet Damani, Senior VP – Commodities Research at Motilal Oswal Financial Services, said.
According to Ravindra Rao, CMT, EPAT VP-Head Commodities Research, Kotak Securities Ltd, the western financial crisis upended global markets, pushing domestic gold prices beyond Rs 60,000 per 10 kilos.
“After increasing more than 5 percent in the previous week, gold prices are up 1.5 percent on Monday, amid widespread risk averse sentiments as UBS-CS settlement failed to assuage market fears. The yield on two-year treasury notes plummeted more than 15 basis points to below 3.7 percent, the lowest since September 2022, signalling caution,” he added.
Gold and silver were trading higher in international markets, at $2,005 per ounce and $22.55 per ounce, respectively. Comex gold prices increased during Asian trading hours on Monday, reaching a new 52-week high of $2,005 per ounce, according to Saumil Gandhi.
Nevertheless, gold prices retreated from the important $2,000 level in a tumultuous trade today as investors assessed the soundness of the global financial industry, despite rising expectations on a Fed rate pause keeping bullion around its one-year high.
As of 1318 GMT, spot gold was down 0.6% at $1,976.60 per ounce, while U.S. gold futures were up 0.5% at $1,983.20. Prices dropped by nearly 1% before rising by the same percentage to $2,009.59, the metal’s highest level since March 2022, narrowly missing the record established at the start of the epidemic.
The recent shotgun wedding between Credit Suisse and UBS and the potential for contagion are being processed by the market, according to independent analyst Ross Norman. This is reflected in the volatility of gold, he added.
After the bankruptcy of Credit Suisse, a 167-year-old lender, and the US-based Silicon Valley Bank earlier this month, prices have increased by more than $100.
Lower interest rates cut the opportunity cost of storing the non-yielding metal, which increases the appeal of gold as a safe-haven asset in difficult economic times.
Ole Hansen, head of commodities strategy at Saxo Bank, stated in a note that “today’s rejection over $2000 may prompt some profit taking, but in our judgement not a change in trend.
“We retain an optimistic outlook for gold, particularly if the FOMC is compelled to shift its focus from combating inflation to preserving stability as a result of the present financial and liquidity crisis.”
