Gold price hits lifetime high of Rs 59,241 amid strong global trends

Spot gold was down 0.6 per cent at $1,976.60 per ounce, as of 6.48 pm India time, while U.S. gold futures rose 0.5 per cent to $1,983.20

Agencies New Delhi

Photo: Bloomberg

Gold price rallied Rs 1,254 to touch a life-time high of Rs 59,241 per 10 gram (gm) on Monday amid strong global trends, acco­rding to data from the India Bullion Exchange. The precious metal, therefore, gai­ned 2.16 per cent after ending at Rs 57,987 per 10 gm at close after the previous trading session. 
Meanwhile, the gold futures breached the Rs 60,000-mark per 10 gm on the Multi Commodity Exchange (MCX) — after banking crises in the US and Europe triggered a return to haven buying — to reach Rs 60,455 per 10 gm before closing at Rs 59,516 per 10 gm.

On the international front, gold prices backed off from the key $2,000 mark in volatile trade as investors assessed the health of the global banking sector even as increasing bets of a rate pause by the Federal Reserve kept bullion near its one-year peak.
Spot gold was down 0.6 per cent at $1,976.60 per ounce, as of 6.48 pm India time, while U.S. gold futures rose 0.5 per cent to $1,983.20.

Prices fell over 1 per cent before climbing by the same amount to the metal's highest level since March 2022 at $2,009.59, just shy of a record set during the onset of the pandemic.
“Gold’s volatility reflects that the market is digesting the recent shotgun wedding bet­w­een Credit Suisse and UBS and the possible contagion,” said independent analyst Ross Norman. 

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Prices have rallied more than $100 after the collapse of U.S.-based Silicon Valley Bank earlier this month, which ensnared 167-year-old lender Credit Suisse. On the silver side, the metal zoomed Rs 1,860 to Rs 69,340 per kilogram. 
“Spot gold prices in the Delhi markets traded at Rs 60,100 per 10 grams, up Rs 1,400 per 10 grams,” said Saumil Gandhi, senior analyst — Commodities, HDFC Securities. Comex Gold prices traded higher in Asian trading hours on Monday and rose to a fresh 52-week high of Rs 2,005 per ounce, Gandhi said.

“Bullions continue surge, with gold on domestic front hitting a new life-time high of over Rs 60,000, as a wave of banking crises shook global markets and put bullion on track for its biggest weekly rise in three years, while bets solidified for a less aggressive Fed in its fight against inflation,” Navneet Damani, Senior VP, commodity research, Motilal Oswal Financial Services, said.
Gold is considered a safe-haven asset during times of financial uncertainty and lower interest rates reduce the opportunity cost of holding the non-yielding bullion, making it more attractive.

“Today’s rejection above $2000 may trigger some profit taking, but in our opinion not a change in direction,” Ole Han­sen, head of commodity strategy at Saxo Bank, said in a note.
Spot silver dipped 1.2 per cent to $22.32 per ounce.

Platinum rose 1.3 per cent to $988.89 and palladium was 1.4% lower at $1,399.24.


First Published: Mar 20 2023 | 10:22 PM IST

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