Gold prices soared to touch a fresh lifetime high on the Multi Commodity Exchange (MCX) on Monday after banking crises in the US and Europe triggered a return to haven buying.
The yellow metal price on MCX crossed the ₹60,000-mark per 10 grams during Monday's trade after opening lower to the previous close.
MCX Gold futures were trading at ₹60,280 at around 12:55 pm, up by ₹897 or 1.51%.
"Gold is expected to do well in near term because gold has tailwinds from US Dollar. Gold has negative correlation with USD Index. Gold does well when USD Dollar Index falls. US Dollar Index has been falling since Oct 22 and accordingly Gold price has been going up since Oct 22. The trend is expected to continue because we expect US Fed to cut rates in 2023 after the Silicon Valley bank Crisis and this will weaken the US Dollar Index further. So hopefully, Gold will do well in coming months," said Dr Mukesh Jindal, Co-Founder of Alpha Capital.
On the international market, Gold rose above $2,000 an ounce for the first time in more than a year.
Credit Suisse effect
Bullion surged 6.5% last week in its biggest advance since the early days of the pandemic in March 2020 amid growing fears over Credit Suisse Group AG and as several regional American lenders collapsed as reported by Mint.
Following news that UBS Group AG had agreed to purchase the Swiss lender in a last-minute, government-brokered deal, it initially gave back some of those gains on Monday, but later in the session it began to rise once more.
As of 3:23 pm in Singapore, spot gold increased 0.6% to $2,000.37 per ounce.
On March 10 of last year, gold prices last traded over the psychologically significant $2,000 level.
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