The price of the yellow metal touched a new lifetime high of Rs 59,461 per 10 gm on the Multi Commodity Exchange on Friday, March 18. The precious metal gained Rs 1,414 per gm over the week from March 13 to close Friday’s trading at Rs 59,420, up 5.86% against the previous week's prices.
The collapse of the Silicon Valley Bank hailed as the largest banking failure post the 2008 crisis, Signature Bank collapse has been extremely positive for Gold. In the international spot market (international market in which commodities are traded for instant delivery) prices of Gold rose by 6.48% over the week to trade at $1,988.50 per ounce against $1,867 per ounce from the previous week as reported by Mint.
Analysts opine that investors are turning to Gold as a haven for investments amid turmoil in the banking sector. The domino effect of the SVB collapse has also exposed the weak financial positions of Signature Bank which collapsed and First Republic bank which was bailed out with a cash injection of $30 billion. Shares of the mentioned banks have seen a near 50% correction in share prices.
Market analyst Sugandha Sachdeva has said to Mint that “gold looks poised to test levels of around Rs 60,000 per 10 gm and $2,000 per ounce in the near term”. Sachdeva also said that the key support for the precious metal is marked a Rs 57,500 per 10 gm and subsequent support at Rs 56,800 per 10 gm mark.
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