Gold Prices Cross Rs 60,000 On MCX

Gold prices have crossed Rs 60,000 per 10 grams for the first time ever on the Multi Commodity Exchange (MCX), the country’s largest commodity futures exchange.

The yellow metal continued its upward march as the appeal of non-yielding gold increased on the back of less aggressive Federal Reserve rate increase predictions, following the failure of two significant US regional banks.

Market Outlook on Gold by Rahul Kalantri, VP of Commodities, Mehta Equities said, “In the aftermath of the American banking crisis, the gold market soared to a lifetime high. Bullion was purchased as a safe haven after the sudden fallout of the SVC bank and other banks”.

He said, the US bond rates saw unprecedented weakness, the dollar index fell, and gold prices increased. In view of the banking crisis and conflicting US economic statistics, the US Fed is expected to convene this week on 22 March.

Kalantri stressed the policy outcomes may provide further guidance for the bullion markets. Gold, a safe haven asset, is currently in a very favourable financial and economic situation. We anticipate a significant increase in price if gold closes over USD 2,000 (spot), which could potentially occur at levels of USD 2070 and USD 2,185. 

For domestic gold, the levels to watch after a close above Rs 60,540 are Rs 61,920 and Rs 64,000 and so this week's US Fed discussion is expected to be significant, he said.