MCX Gold crossed ₹59000 mark for the first time, spot Gold at $1964

MCX Gold breached the ₹59000 barrier for the first time recorded at ₹59137.00 levels and spot Gold at $1964 amid US Federal Reserve would not boost rates at the forthcoming March 21–23 FOMC meeting, The MCX’s April 2023 gold futures contract began moderately at Rs. 57955.00 per 10 gm and managed to reach an intraday high of Rs. 58525.00.

Praveen Singh – AVP, Fundamental currencies and Commodities analyst at Sharekhan by BNP Paribas said “Gold prices at $1930 are up by 0.50% on softer US yields. Treasuries and gold are drawing support from the notion that the US Federal Reserve will not hike rates at the upcoming March 21-23 FOMC meet, which is keeping Dollar weak. Some market participants expect the Fed to stay on hold due to the ongoing banking crisis. Softer US PPI and retail sales data support this possibility. Today’s data include industrial production, University of Michigan consumer sentiment, and CB leading index.”

“Credit concerns are somewhat fading as the big US Banks have come together to inject $30 Billion in the First Republic Bank. Credit Suisse is likely to get liquidity support from Swiss National Bank. However, concerns continue to keep investors on edge, which is supporting gold prices. The yellow metal is expected to trade between $1900 and $1940,” said Praveen Singh.

A R Ramachandran, Co-founder & Trainer, Tips2trades said “A potential banking sector collapse both in US and Europe created due to successive interest rate hikes has led to an expectedly strong rally in Gold. A daily close above $1960 today could lead to an extended uptrend up to $1980-1991 by next week. Strong support will now be at $1918.”