Gold rates in futures market may touch a new high of ₹68,350 per 10 gram tracking the firm trend in the international markets. Gold for March delivery touched a high of ₹68,700 and low of ₹68,210 on Tuesday as US dollar weakened.

Near month, February gold contract was up 0.28 per cent at ₹56,974 per 10 grams.

In spot market, gold was up at ₹57,322 per 10 gram against ₹57,044 on Monday, as per the India Bullion and Jewellers Association. Gold prices have increased by ₹2,956 per 10 grams from ₹54,366 on December 23.

Ravindra V Rao, VP-Head Commodity Research, Kotak Securities said Comex gold prices rose for the fifth week in a row, to a fresh nine-month high of $1,939 per troy ounce in the previous week, amid a softer dollar, poor corporate earnings and heightened layoffs, raising concerns of a recession.

The yellow metal has been witnessing a one-sided rally since early November, after touching a 28-month low of $1,618 per troy ounce, on signs the Federal Reserve was turning less hawkish, spurring decline in the greenback and US treasury yields. Prospects of a looming slowdown in the US, cooling inflation and labour market coupled with a Fed pivot might continue to bolster gold prices, he said.

Latest data released showed that the US consumer prices fell for the first time in more than two years in December, offering hope that inflation was now on a sustained downward trend. The Labour Department’s report showed the US consumer prices grew 6.5 per cent on an annual basis in December, in line with expectations, from a 7.1 per cent rise last month

Related Topics
comment COMMENT NOW