HYDERABAD: Out-dazzling itself with every passing day, gold scored a hat-trick of sorts on Thursday. The yellow metal’s price in the
international market
vaulted to yet another
record high
for the third straight day at $2,165-per-ounce, propelled mainly by
US Federal Reserve
chair Jeremy Powell’s dovish stance on interest rates. Historically,
interest rates
in the US and gold prices have had an inverse relationship.
Following global cues, gold prices in the
domestic market
also surged to a new
life-high level
at Rs 65,587 per 10gm for 24K (995 purity for April contract) on MCX during the day.
In the local market for physical gold bars, the price of the precious metal jumped by around Rs 500 and was quoting at around Rs 65,650 (pre-tax) and Rs 67,270 (including GST). In Delhi’s market, it was quoted marginally lower.
“Gold continued its upward march after US Fed chief Jerome Powell reiterated that the US central bank will most likely lower interest rates later this year. Weak US economic data and banking jitters all together pushed the US dollar and bond yields to a multi-week low, helping gold prices rally more than 3% so far this week,” said Saumil Gandhi, senior analyst-commodities, HDFC Securities.
The northward march for the yellow metal is not expected to halt soon, feels Gandhi. He said that from a technical standpoint, the bullish trend is likely to continue as gold prices broke the previous resistance and are now in new territory. “Comex gold now has immediate resistance at $2,180/$2,200 level and support at $2,119/$2,094 level,” he said.