Gold rates today near $2000 on soft US dollar. Will it climb to a new peak?
2 min read 31 Mar 2023, 09:50 AM ISTGold price may become highly bullish after breaching immediate hurdle placed at $2,000 levels, believe experts
PremiumGold rates today: After hitting $2,000 per ounce levels on Thursday, gold price today in international spot market is close to $2,000 levels, which has fueled speculation about the yellow metal breaching its life-time high of $2,072 per ounce. On MCX, gold price opened with an upside gap and went on to hit intraday high of ₹59,487 per 10 gm levels. Silver rate today opened at ₹72,000 per kg levels and went on to climb to intraday high of ₹72,094 per kg levels. In international market, yellow metal is quoting around $1,982 per ounce whereas white metal is quoting around $23.90 per ounce.
According to commodity market experts, bullions are ascending in international market as US dollar rate has softened and Dollar Index has slipped below 102 levels. They said that gold price may become highly bullish once it sustains above $2,000 levels in international market and above ₹60,000 per 10 gm in domestic market. similarly, silver rate today has immediate resistance placed at $24 per ounce levels while in domestic market, silver price has resistance placed at 72,500 per kg levels.
What's fueling gold, silver price rally
On why gold and silver prices are ascending, market expert Sugandha Sachdeva said, "Gold has maintained its charm while logging strong gains in the previous session even as the concerns about the banking sector crisis are abating and risk on sentiments are returning to the markets. The recent softening of the dollar index has been a key variable supporting the outlook for gold as market participants are expecting that the US Fed will not hike rates much higher than the current levels."
Can gold climb to a new peak?
On whether gold price climb to a new high in current rally, Debajit Saha, lead analyst at Refinitiv Metals said, "The sudden rise in gold prices, primarily caused by the collapse of two regional banks in US, and followed by the crisis in a Swiss bank and the Federal Reserve’s decision to raise the interest rate, has created a lot of speculation in market that gold may hit a new high in the current run. While the possibility cannot be entirely ruled out as extreme speculation is at place, but, fundamentally, it appears value investors would prefer to stay away and wait for prices to stabilise."
Advising positional investors to wait for fresh breakout in yellow metal price, Sugandha Sachdeva said, "Price structure indicates that a convincing move above ₹60,000 per 10 gm mark (June contract) could lead to further gains towards ₹60,600 per 10 gm. Having said that, the $2,000 per ounce mark remains a key hurdle for the near term." She said that all eyes would now be on the US PCE price index data, the Fed’s favored inflation gauge that could provide further cues about the central bank's policy stance going forward.
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.
