Gold Price Record Jump: Gold prices hit a record high on the Multi Commodity Exchange (MCX) on Monday following the banking crisis in the US and Europe. Gold price on MCX crossed Rs 60,000 per 10 grams for the first time during Monday’s trade. MCX gold futures were trading at Rs 60,280, up by Rs 897, or 1.51 per cent, at around 1 pm. MCX silver prices also advanced and were trading at Rs 69,100 per kg, up by Rs 599 or 0.87 per cent, at 1:23 pm.
Gold will be more expensive now
Dr Mukesh Jindal, Co-Founder, Alpha Capital, said that gold is expected to do well in the near future as it benefits from the US dollar. Gold has a negative correlation with the USD index. Gold does well when the USD dollar index falls. US dollar index is falling since 22nd October and accordingly gold price is going up from 22nd October. This rise is expected to continue, as we expect the US Fed to cut rates in 2023 following the Silicon Valley bank crisis, further weakening the US Dollar Index. So it is expected that gold will do well in the coming months.
The situation is not good even in the international market
According to ICICI Direct, MCX silver price is likely to move higher towards 69,300 levels. In the international market, gold has climbed above $2,000 an ounce for the first time in more than a year. According to a market analyst, the race is on to reassure the markets on the recent global financial instabilities. Bullion soared 6.5 percent last week in its biggest gain since the early days of the pandemic in March 2020 amid mounting fears over Credit Suisse Group AG and the collapse of several regional US lenders.
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