Gold hits high of $2,149/Oz, shoots to 65k/10gm on MCX

Hyderabad: A day after hitting a new record, gold scaled yet another peak of $2,149 per oz on Wednesday, coming within kissing distance of $2,150 per oz mark in international spot market.
In domestic market too, the yellow metal created a new high of 65,250 on MCX (April contract) after US Federal Reserve chair Jerome Powell’s testimony before the US Congress.
In local markets gold stayed above 65,000 per 10 gm (999 purity, including import duty), at about 65,130 in Hyderabad and was quoting around 65,150 in markets like New Delhi.
“Gold prices extended gains on Wednesday following two macroeconomic data releases on Tuesday, highlighting an economic slowdown in the US, which increased speculation over a Federal Reserve pivot. Later in his testimony he did not rule out a rate cut which market saw as a positive,” said Saumil Gandhi, senior analyst-commodities, HDFC Securities.
The geopolitical unrest in the Middle East and the weak economic outlook of China too are expected to boost demand for gold as a safe haven asset.
“Now $2100 per oz has become the new support level and $2,180 per oz the next resistance level followed by $2250 in spot market. If this happens, it could propel gold 65,700 per 10 gm and 67,000 per 10 gm in the short term,” Gandhi said.
However, Indian Bullion & Jewellers Association (IBJA) national secretary Surendra Mehta said Powell indicating that US Fed is not sure about rate cuts unless they have greater confidence about inflation moving towards 2%, could hit the pause on rising gold prices.
“The gold market will now move towards normal movement instead of the overall daily $30-40 per oz jump that we were seeing daily,” Mehta said.