• In India, domestic gold prices have risen by nearly ₹7,000 in the last four months
Tracking the rise in international prices, gold today moved higher in the Indian markets and touched its all-time high. Bullion futures on MCX rose 0.15% to Rs 56,745 per 10 grams after hitting a fresh peak of Rs 56,850 on Friday. Silver futures rose 0.6% to Rs 68,970 per kg.
In global markets, gold rose 0.3% to $1,932.12 an ounce supported by a soft dollar. Expectations of an interest rate hike by the Federal Reserve also fueled the appeal of the precious metal. Among other precious metals, spot silver rose 0.4 per cent to $24.04 an ounce.
"Comex gold prices rose for the fifth consecutive week, hitting a nine-month high of $1,939 per troy ounce in the previous week, amid rising recession concerns on a softer dollar, poor corporate earnings and increased layoffs," Ravindra said. V. Rao, VP-Head Commodity Research, Kotak Securities Ltd.
"The yellow metal has been witnessing a one-sided rally since early November, touching a 28-month low of $1,618 per troy ounce, on signs the Federal Reserve was becoming less aggressive, sliding against the greenback and US Treasury yields. Outlook US Gold prices may continue to move higher due to looming recession, easing inflation and Fed's pivot to the labor market."
In India, domestic prices have increased by around ₹7,000 in the last four months, beating international rates.
The Federal Reserve's two-day meeting ending February 1 has most market participants expecting a 25-basis point hike. Low rates reduce the opportunity cost of holding zero-yield bullion. On the other hand, a soft US dollar makes dollar-denominated bullion attractive to buyers holding other currencies.
Traders are also monitoring the Covid situation in top gold consumer China.
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