Riding high on the looming banking crisis in the US, domestic gold prices mirrored the global trend to cross ₹60,000 per 10 gram-mark for the first time ever on MCX, the country’s largest commodity futures exchange.
Gold for April delivery on the MCX hit a high of ₹60,455 before cooling off to ₹59,630. In the spot market, the yellow metal increased by ₹1,259 per 10 gram to ₹59,479.
After a sharp rally last week, gold prices continued their upward march as the appeal of non-yielding bullion increased because of predictions of less aggressive rate hikes by the US Federal Reserve following the failure of two significant regional banks.
Ajay Kumar, Director, Kedia Commodities, said the run-up in gold prices was accentuated by concern over the contagion effect of Silicon Valley Bank collapse and hawkish comments from Fed Chairman Jerome Powell.
Amid the western world’s financial difficulties, haven’t buying lifted prices of the precious metal, he said.
Gold prices have risen almost 7-8 per cent in the past month. The current situation globally may take some time to clear out. Globally, central banks have been adding gold reserves.