 "Never grows old: Gold jumps Rs 1,062, touches new high of Rs 60,538")
Gold keeps getting brighter by the day. On Wednesday, spot price of the yellow metal rallied Rs 1,062 to touch a life-time high of Rs 60,538 per 10 grams amid strong global trends.
In the previous trade, the precious metal had settled at Rs 59,476 per 10 grams.
The MCX Gold Futures, meanwhile, touched an all-time high of Rs 61,181 per 10 gm.
Also, in the national capital, silver zoomed Rs 1,810 to Rs 73,950 per kilogram.
“In domestic market gold prices crossed the Rs 61,000 level per 10 grams to a fresh life-time high,” Saumil Gandhi, senior analyst, commodities, HDFC Securities, said.
In the international market, spot gold was up 0.2 per cent at $2,024.69 per ounce while US gold futures rose 0.1 per cent to $2,040.90 during intraday trade.
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Gold raced past the key $2,000 level on Tuesday after a sharp drop in US job openings in February, adding on to gains from earlier this week after an Opec-led spike in oil triggered worries of another run higher in inflation.
Softer-than-expected growth in private payrolls in March also exacerbated worries over the economic toll from the Federal Reserve’s rapid rate hikes. Bullion found additional support from a subdued dollar overall, and a retreat in US yields.
“That downbeat economic data we got yesterday put a little risk aversion back into the marketplace and that’s beneficial for safe-haven gold,” said Jim Wyckoff, senior analyst at Kitco Metals. Traders now see a 60 per cent chance of US rate hikes pausing in May, brightening the outlook for zero-yield gold and also its status as the preferred inflation hedge.
“The mood in the gold market has improved massively” since the US banking turmoil as indicated by the return of speculative short-term traders and trend followers, Carsten Menke, head of Next Generation Research at Julius Baer, wrote in a note.
However, Menke reiterated a cautious view on gold, reasoning a US recession may still be avoided while a ‘rapid reversal’ of Fed policy was unlikely.
The US non-farm payrolls data on Friday could provide further cues, although analysts said market reaction may be apparent only next week due to the Good Friday holiday.