Gold rate today: Because the bank crisis is getting better and the European Central Bank (ECB) raised interest rates for the sixth time in a row, the price of gold and silver went up in early morning trades. Gold price came closer to its all-time high of 58,847 per 10 gm and hit an intraday high of 58,277, which was about 600 per 10 gm away from its record high on Multi Commodity Exchange (MCX).
Gold futures for April 2023 on MCX started the day on the up side at 58,269 per 10 gm and reached an intraday high of 58,277. But soon after, people started taking profits, and the price of gold dropped to 58,174 per 10 gm during the day.
The silver futures contract for May 2023 on MCX opened up at 67,140 per kg and went up to 67,417 per kg within a few minutes of the market opening.
Why gold and silver prices are going through the roof
Anuj Gupta, Vice President of Research at IIFL Securities, said, “After the ECB rate hike, the US dollar rate has come under pressure, and the Dollar Index has dropped below 104 levels.” This is why gold and silver prices went up today. This has helped the yellow metal, which led to a lot of buying in early morning trades.”
Marc Despallieres, Chief Strategy and Trading Officer at Vantage, said, “Markets started the day in a better mood as governments and central banks took steps to protect banks’ credibility and keep the crisis from getting worse.” This was in response to the news that Credit Suisse Bank had failed. Relief came when the Swiss National Bank and the Swiss Financial Market Supervisory Authority said late Wednesday that Credit Suisse met the capital requirements for banks and that they would provide liquidity if needed. The ECB’s decision on monetary policy, which was widely expected, was to raise rates by 50 basis points.
Source: Team CurrencyVeda
Marc went on to say that, despite the trouble at Credit Suisse, President Christine Lagarde said that the European banks are strong and much stronger than they were in 2008 because interest rates were raised.
The future price of gold
Anuj Gupta of IIFL Securities said, “A lot will depend on what happens at the FOMC meeting of the US Federal Reserve. If the US Fed decided to stop raising interest rates, the US dollar would come under more pressure, which would cause stocks, gold, and other bullion metals to move sharply up. If the US Fed doesn’t raise interest rates, gold prices may break through their current barrier at $1,950 per ounce and go on to reach their next barrier at $2,000 (60,000 on MCX).
Disclaimer: The opinions and suggestions above are not those of Mint, but of individual analysts or brokerage firms. Before making any investment decisions, we tell people to check with certified experts.