MUMBAI: Gold prices touched a lifetime high on Monday, with yellow metal crossing Rs 60,000 for the first time ever as a wave of banking crises shook global markets. Gold futures rose to Rs 60,359 per 10 gram on the MCX, registering a gain of 1.8% on Monday. Investors rush to buy gold as they feared another global banking crisis after fall in banks in the US and the $ 3.25 billion rescue deal for Credit Suisse;
“WSJ reported in a new study, economists said they found 186 banks that may be prone to similar risks as SVB. This raises concerns of financial contagion and a hard landing in the US, improving the appeal for the yellow metal for its safe haven status. Extreme risk-off sentiments and caution prevails in markets and gold is a major beneficiary of this crisis,” said Ravindra V Rao, VP-Head Commodity Research, Kotak Securities. Gold has risen about 8% since the start of this year, mainly driven by global factors.
Analysts expect the rally in gold prices to continue with prices likely to go up to Rs 64,000 a 10 gram this year due to concerns of weakening global growth and fears of recession. “We anticipate a significant rise in price if gold closes over $2000 (spot), which could occur at levels of $2070 and $2185,” said Rahul Kalantri, VP Commodities, Mehta Equities.