Gold rate today: Yellow metal extends safe haven appeal on SVB collapse
2 min read . Updated: 13 Mar 2023, 12:39 PM IST
Premium- Gold rate today is in uptrend due to Signature Bank collapse after SVB crisis that has put US dollar rates under pressure, say bullion experts
Gold rate today: On account of Silicon Valley Bank (SVB) collapse followed by Signature Bank crisis, gold prices continued to attract safe haven appeal for third straight session on Monday morning deals. Gold future contract for the month of April 2023 opened upside at ₹56,667 per 10 gm but witnessed profit booking triggered and the precious yellow metal price hit intraday low of ₹56,412 per 10 gm levels. However, the precious bullion metal remained higher from its Friday close of ₹56,150 levels. In international spot market, gold price today is quoting 0.65 per cent higher at around $1,880 per ounce levels.
According to commodity market experts, gold rate today has immediate support placed at ₹55,700 per 10 gm levels whereas it is facing hurdle at ₹57,500 per 10 gm levels. They said that gold price has been ascending after the SVB collapse that got further momentum after the news break of Signature Bank collapse. After Silicon Valley Bank crisis, US non-farm payroll data provided support to gold price rally on the weekend session. Experts maintained that gold prices are expected to continue attracting safe haven appeal in near term and it may go up to $1,920 per ounce levels ahead of US CPI data release this week.
Signature Bank collapse after SVB crisis
Expecting safe haven appeal for gold price to continue, Amit Sajeja, Vice President — Research at Motilal Oswal said, "Gold rate today is in uptrend due to series of bank collapse in the US. Gold prices attracted safe haven demand on Thursday after the news release of Silicon Valley Bank crisis, which further deepened after the signature Bank collapse. Rest of the work was done by conducive US non-farm payroll data that further provided support to gold price rally."
US dollar rate in focus
Asking gold investors to keep an eye on Dollar Index, Anuj Gupta, Vice President — Research at IIFL Securities said, "After Silicon Valley Bank collapse news, US dollar rates have retraced from three month highs. Dollar Index has descended from near 106 levels to 103 levels, which is providing support to gold price rally. As banking crisis in the US has jeopardized most of the assets, gold has once again started to attract as safe haven appeal. But, any pull back rally is expected to trigger profit booking on gold price. So, one needs to remain vigilant about the US dollar rates."
Amit Sajeja of Motilal Oswal said that upcoming US CPI data holds key in regard to future course of action in gold prices. He said that gold has ascended from $1,815 levels to $1,880 levels in mere three sessions and hence some profit booking is expected around $1,880 to $1,885 levels. But, after profit-booking $1,850 to $1,860 would be a good buying range for near term target of $1,920 per ounce levels.
"Gold prices in India is expected to rebound from around ₹56,200 per 10 gm levels for near term target of ₹57,500 per 10 gm levels. So, one can buy around ₹56,200 levels for near term target of ₹57,500 maintaining stop loss at ₹55,700 per 10 gm levels," said Amit Sajeja. However, Motilal Oswal expert advised gold investors to book profit before US CPI data release this week as the precious bullion metal can move any ways after the data release.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
