CHENNAI: Gold prices jumped above Rs 61,000 per 10 gm in the Indian market as prices in the international market zoomed past $2020 per ounce.
Gold moved up Rs 61,000 in the Multi Commodity Exchange as dollar tested new lows as market bet on 2023 Federal reserve interest rate cuts. In the international market, gold jumped above $2,010 following the release of US economic data reaching the highest level since March of last year. Gold rose one per cent on Tuesday, boosted by a weaker US dollar and lower US Treasury bond yields.
During the intra-day trade in the international market, especially with the start of the session in the US, gold had moved up to $2,024/oz, the strongest level since March 9, 2022.
The release of US employment data also supported gold as new job openings fell to 9.93 million from 10.5 million in February, below the 10.4 million expected. Factory orders too were reported to have declined.
“For the entire year, we expect gold prices to move towards Rs 64,000 per 10 gm as the international market may see prices touching a new high of $2250 per ounce. Apart from the fears of banking contagion, the recessionary fears, Ukraine crisis and the interest rate regime will support gold. The central bank buying and physical buying in China may also keep prices firm,” said Ajay Kedia, MD, Kedia Commodities.
According to him, rupee weakness could also support gold prices. “The Indian rupee has been holding steady at 82-83 range for a few weeks, but with the recent OPEC+ production cut and crude oil prices rallying, the rupee's stability is at risk. It's predicted that the rupee may break the 83.20 level and reach 85 within the next six months,” he said.
