Gold prices surged more than 2 per cent on Friday riding on a wave of banking crisis. Due to the rising fall in dollar and global stock markets. Gold hits a new record level in the domestic and international markets. Globe causes of the high price of gold.
The precious metal which is believed to be a safe investment’s price on the Multi commodity exchange of India(MCX) price surpassed Rs. 59,000 mark and hit an all time high of Rs. 59,461 per ten grams on the Multi commodity exchange of India.
MCX gold has proved to be the most promising one in terms of returns against all other asset classes. The bullion has witnessed its biggest weekly rise in the last three years. This is a consequence of baking crisis of US and Europe, which may result to the trends remaining intact next week also.Â
Gold prices have risen:
On a year-to-date (YTD) basis, it has increased by Rs 4,366 or almost 8%, while yielding Rs 3,628 or 6.51% in March alone. Additionally, silver prices are up 6% on a monthly basis and have recovered most of their YTD losses. According to Gupta, they are only 1.31% away from the ending price of the prior year after experiencing negative returns of over 11% this year. In terms of valuation, Silver has increased by Rs 3,878 MTD but has decreased by Rs 912 YTD. He is the Vice President, Commodity and currency research at IIFL Securities.
Due to concerns rising in the US after Silicon Valley Bank(SVB) collapse, gold prices have jumped Rs 3000 in the domestic market. In the international markets, the gold prices touched $1976.84 an ounce that means an accumulative rise of 3.01 per cent, their highest since April.
Another reason for this stark price rise is due to the US banks fiasco which conditioned a systematic risk threat. Safe haven instruments including gold rallied sharply in the last few days while a sharp decline in the yields was quite noticeable. Eight recessions have hit the world in the past fifty years, and in six of them, gold prices have risen.
The Dow Jones Industrial Average dropped 384.57 points, or 1.19 percent, to finish at 31,861.98 on Friday. The S&P 500 lost 43.64 points, or 1.10 percent, to close at 3,916.64, and the Nasdaq Composite fell 86.76 points, or 0.74 percent, to close at 11,630.51.
The S&P Banking index and the KBW Regional Banking index both experienced their biggest two-week declines since March 2020 over the past two weeks, falling by 4.6 and 5.4%, respectively.
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