Following the March FOMC meeting on Wednesday, 22 March, the price of gold surged higher, peaking at $1,978, not far from where it is currently trading on Thursday, 23 March. The US Federal Reserve (Fed) suggested that tighter credit conditions due to banking stress might do the job of bringing down inflation on its behalf and that, as a result, it would likely not have to raise rates as much as expected in the future, which caused the precious metal rise.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

Today's gold price began with an upward gap at Rs 59,231 and then reached an intraday high of Rs 59,283 per 10 gm in the morning session. The price of gold rose today on the international spot market, reaching an intraday high of $1,976 per ounce.

By hiking rates by 25 basis points, the U.S. Federal Reserve indicated that it was approaching the pinnacle of its rate hike cycle, which contributed to an increase in the price of yellow metal globally. Investors will find the yellow metal more appealing as a result of the continued low-interest rates.

Gold price forecast

Talking about the gold price if it can go back to Rs 60,000 level, Vandana Bharti - AVP, Commodity Research - SMC Global, said, "Gold can go back to that 60K level, reason being interest rate has gone up, inflation has gone by 3 per cent but recession fear is still there, the dollar index is also a downside and the only relief is, there is not that much panic in equity market yet. But if one or two more bank news comes, unfortunately, gold can go up to $2050-2060."

Commenting on the domestic gold market, she added, that there is a possibility to go up to Rs 62,500 if more such news comes from the banking sector.

Currently, the gold is trading at Rs 59,190 for 10 grams, up 0.94 per cent from its previous close. 

ALSO READ: Gold price hit record high amid bank crisis in US; MCX Gold up Rs 3000 in a week