Gold Prices on the Multi Commodity Exchange saw an increase on March 10 as the US Labour data weakened the Dollar. The wage growth rate was slower than the expectations of the market and there was a rise in the unemployment rate as reported by Reuters. The dollar index fell by 0.62% on Friday's closing.
The inversely proportional relationship with the dollar sent gold prices increasing as the dollar showed signs of weakening. The Multi Commodity Exchange (MCX) recorded a gain of Rs 829 per 10gms gold ending Friday’s trading at Rs 56,130.
Commodity market experts think that gold is rising as the slow wage growth data could ease the US inflation and could result in a lower rate hike by the Fed. An increasing rate of unemployment can also ease inflation as the money circulation in the market is reduced.
The Support for 10gms of the yellow metal is placed at Rs 55,200 and its resistance is placed at Rs 56,700 and Rs 57,000 as reported by Mint. Market expert Nirpendra Yadav of Swastika Investment likened the increase in the price of the yellow metal to the fall in cryptocurrency Bitcoin, the rising unemployment rate in the US and bankruptcy news of the Silicon Valley bank exerting pressure on the equity markets.
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