Domestic gold prices jump to a lifetime high

Mumbai: Prices of gold jumped to a lifetime high again in the domestic market on Wednesday, crossing the ₹61,000 mark per 10 grams. Prices on the COMEX rose to a 13-month high, while the June futures contract of gold touched a lifetime high of ₹61,181 on MCX Wednesday.

Prospects of the US Federal Reserve taking a more dovish stance, and perhaps, even reducing interest rates by the end of the year, weighed on the dollar, boosting gold prices in the international market.

“US ISM Manufacturing PMI released on Monday pointed to a fifth straight month of contraction in factory activity, in a sign that tighter credit conditions are already hurting the economy,” said Ravindra V Rao, the head of commodity research at Kotak Securities.

“We expect gold prices to trade with a positive momentum, amid deteriorating macro cues,” Rao said. Among others, gold prices are likely to take further cues from the US ISM non-manufacturing data for March, analysts said.

Don’t miss out on ET Prime stories! Get your daily dose of business updates on WhatsApp. click here!

Source link

Spread the word!

Leave a Comment

Your email address will not be published. Required fields are marked *