Gold prices hit another record high on Thursday, reaching ₹89,796 per 10 grams for the third consecutive session, driven by a strong trend in global markets.
The April delivery contracts on the Multi Commodity Exchange (MCX) soared to a peak of ₹89,796 per 10 grams in the morning trade before easing back. The yellow metal was trading at ₹88,870 per 10 grams, up ₹268 or 0.3% from the previous close, with a turnover of 13,084 lots.
Investors continued to flock to safe-haven assets following the US Federal Reserve’s decision to keep interest rates unchanged, with analysts citing the central bank’s indication of a possible rate cut later in the year.
Gold futures also surged to a lifetime high of $3,065.09 per ounce in New York, driven by a weak dollar index and low bond yields. “Gold rallies to another historic high in international markets after the US Federal Reserve held interest rates steady as anticipated but signalled a possible reduction in borrowing costs by half a percentage point by the end of this year,” Rahul Kalantri, VP of Commodities at Mehta Equities Ltd, said.
The combination of factors including the Fed’s stance on interest rates, the weak dollar index, and low bond yields continued to support the upward momentum in gold prices globally.
