Gold Prices In India Cross Rs 61000 Per 10 Grams, International Prices Hit 1- Year Peak

Gold price today continues its surge after scaling life-time high of Rs 61,145 per 10 gm on Multi Commodity Exchange (MCX) on Tuesday. Soon after surging to record high on MCX, the yellow metal touched 13-month high in the global market. It is worth mentioning that yellow metal also crossed the $2000 per troy ounce mark in the COMEX index too.

In India, 22 K gold price is Rs 56,250 per 10 gram after the surge of Rs 950 per 10 grams. Meanwhile, price of 24K gold per 10 gram in India is Rs 61,360 after the rally of Rs 1030 per 10 grams.

In India, price of 1 kg of silver is Rs 77,090 after a huge surge of Rs 2490 on Wednesday.

According to Colin Shah, MD, Kama Jewelry "Gold and silver prices have hit fresh high levels. Gold prices have hit levels of $2025/oz in the international market, silver at $25, while domestically gold prices have surpassed the level of Rs 61,000/10 gm level."

The primary reasons for the rally in the precious metals are the softening dollar index. The Dollar Index has fallen to a 2-month low as there is a widening belief that the Fed may not only pause but start slashing rates by the end of 2023. Being a safe haven, and often attracts investors' interest in times of uncertainty and slowdown, low rates, added Colin Shah.

The Kama Jewelry MD said, "The weak economic data like manufacturing activity and the job market are showing signs of an impending risk of a slowdown in the US economy. These developments will restrict the Fed's ability to tighten rates and liquidity."

"We are witnessing a cup and handle pattern in the prices. We expect the rates of gold to appreciate further primarily due to two reasons - domestic demand by retail investors due to festivities and central banks buying. We are likely to see some pain on the economic growth front thereby providing support to the gold prices," Colin Shah stated.