Markets

Gold prices rise to historic high; touch Rs.66,778 per 10 gms

Gold prices rose by Rs.1,028 over the previous day's closing which works out to a nearly 1.5% increase

March 21, 2024

Gold surges to a new peak

On Thursday, the gold prices surged to a historic high touching Rs.66,778 per 10 grams on the MCX in morning trade.

Gold prices rose by Rs.1,028over the previous day’s closing which works out to a nearly 1.5 percent increase.

In the international market, gold prices soared past $2,200 an ounce for the first time in opening trade. Spot gold rose 0.7 percent to $2,201.94 an ounce at 9:40 a.m. in Singapore.

Reasons for the price surge of the yellow metal:

· Rising geopolitical risks and buying by central banks, led by China have also fueled gold prices.

· The Russia-Ukraine war seems to be far from coming to an end.

· The Israel-Hamas conflict spreading to the Red Sea region.

· US Federal Reserve maintaining its outlook for a soft money policy with at least three rate cuts this year

· Low-interest rates make financial instruments less attractive for investors compared to gold-leading.

Gold is seen as an attractive safe haven asset by investors. The demand for gold in the domestic market remains firm amid the marriage season as the precious metal is gifted to brides and grooms in large quantities.

For all the latest updates, download PGurus App.