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

Gold hit a new record high level in the domestic and international markets mainly due to fall in dollar and global stock markets on the back of crisis in US, according to Zee Business report.

The yellow metal’s price on the Multi Commodity Exchange of India (MCX) price breached Rs 59,000 mark for the first time. It hit a lifetime high of Rs 59,461 per 10 gm on MCX, from the previous high of Rs 58,847 per 10 gm during the Friday session.

Gold in the last one week has jumped by about Rs 3000 in the domestic market amid a weak equity market and also mainly due to concerns rising in the US after Silicon Valley Bank collapse.

In the international market, spot gold prices rose 3.01 per cent to $1,976.84 an ounce after touching their highest since April. US gold futures gained 2.6 per cent to settle at $1,973.50, according to a Reuters report.

It was up more than $70 in a day in the international market, the Zee Business report said.

The US banks' fiasco stoked systematic risk threat which led to a sharp decline in the yields as safe haven instruments including Gold rallied sharply in the last few days, according to Praveen Singh – AVP, Fundamental currencies and Commodities analyst at Sharekhan by BNP Paribas.

The US markets on Friday closed in the red as the Dow Jones Industrial Average fell 384.57 points, or 1.19 per cent, to 31,861.98, the S&P 500 lost 43.64 points, or 1.10 per cent, to 3,916.64 and the Nasdaq Composite dropped 86.76 points, or 0.74 per cent, to 11,630.51.

Over the last two weeks, the S&P Banking index and the KBW Regional Banking index plunged by 4.6 and 5.4 per cent, respectively, their largest two-week drops since March 2020.