Gold Hits New Life-high Of Over ₹56k On Mcx | Mumbai News


Mumbai: Gold prices hit a new all-time high on the MCX on Friday at Rs 56,245 per 10 grams. The development comes as global prices are on an upswing on demand by central banks, rupee’s weakness and several other factors.
Globally, too, gold prices are rallying and broke above the $1,900-per-ounce level on Thursday — the first time since mid-April last year. Gold prices in Comex in New York also held above $1,900, the highest since May 2022, as a cooler inflation figure from the US gave the Fed room to slow pace of rate hikes, Kotak Securities said.
However, the prices of the yellow metal in the wholesale and retail physical markets in India usually differ from that on the commodities exchanges. On Friday, with weak demand pervading in the physical market, gold prices at Mumbai’s Zaveri bazaar and other markets around the country were at a Rs 500-800 discount to the MCX price, analysts said (see graphic).
In early trades on Friday, price of gold futures for February delivery on MCX hit Rs 56,245 — a tad higher than Rs 56,191 recorded in August 2020. “Inflationary concerns and rising uncertainties are ingredients for gold’s rally,” said Navneet Damani, senior VP (commodity research) at Motilal Oswal Financial Services. “Geopolitical and Covid concerns continue to support safe haven assets,” Damani said.
The yellow metal is a natural hedge against inflation. It also turns into one of the preferred asset classes in times of uncertainty in the market. With the US Federal Reserve expected to tone down its rate hiking spree in its next meeting, that may aid the price of this precious metal, analysts said.
Damani expects either a price- or a time-correction in the prices of the yellow metal this quarter since he feels the market is overheated. If China opens up, there could be some demand revival in the second and the third quarters. Gold prices in the international markets could rally up to $2,100 level, while on the MCX it could rally beyond the Rs 60,000 mark, he said.

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