This rise in gold prices was fueled by mounting concerns over oil-led inflation, despite the possibility of interest rate hikes. Spot gold rose 1.7% to $2,017.89 per ounce by 11:30 a.m. EDT (15:30 GMT), reaching its highest level since March 9, 2022 at $2,024.79 earlier. U.S. gold futures also gained 1.8% to $2,036.20.
The dollar added to its losses after U.S. job openings in February dropped to a near two-year low, while factory orders also dipped, further burnishing gold’s appeal. Analysts predict that the gold price will remain strong and stabilize at its current level or even higher, with the $2,050 mark serving as a crucial resistance level. If breached, prices could quickly soar towards its all-time high, said Alexander Zumpfe, a precious metals dealer at Heraeus.
The price of gold has surpassed $2,020. Understanding the Current Gold Rush.
Gold and silver are currently on the rise, with gold buying activity from central banks having jumped more than 150% year-over-year. Despite the high price of gold, consumer investment demand is also doubling, with more people tuning in to what’s going on in the precious metals industry. The article explores the reasons behind this sudden surge in gold and silver buying activity, including heavy interest rate hikes and a strong dollar, which would normally be bad for gold demand and price.
According to 2 is 1, interest in gold is at an all-time high, with viewership on precious metals channels on YouTube going up considerably. Local coin shops are also reporting an increase in store activity, with some reporting twice the activity than a normal month. Gold has become more expensive to buy right now, with spot price pushing two thousand dollars, and premiums are also creeping back up as dealers are having to work through high demand on their inventory. This makes it a seller’s market, giving them the power to pick their prices.
On Tuesday, the price of gold in India rose to a new high.
with MCX futures crossing the Rs 61,000 per 10 grams mark for the first time ever. This record was achieved during the evening session on MCX, which runs from 5 pm to 11:30/11:55 pm, as the exchange was closed during the morning session due to the Mahavir Jayanti holiday.
Gold Prices Surge Globally: Should Investors Buy in 2023?
Gold prices have been on the rise due to various global events, including inflation triggering central banks to raise interest rates, geopolitical tensions, and uncertainty in stock markets. The World Gold Council data shows that central banks purchased nearly $70 billion of gold in 2022, hitting an all-time high for any year since 1950. In India, gold prices have also touched record highs of INR 60,000 per 10 gms of gold as of March 21, 2023.
Despite the dramatic increase in prices, analysts believe that gold will continue to perform well, outperforming other asset classes in 2023 due to persisting inflation woes. Saumil Gandhi, senior analyst for Commodities at HDFC Securities, believes that gold is in an uptrend and Comex gold prices could retest all-time highs around $2,070 per ounce.
Investors have several options to consider when investing in gold, including purchasing physical gold or trading through gold exchange-traded funds (ETFs). Ajit Mishra, the vice-president of research at Religare Broking, advises investors to maintain a systematic investment plan (SIP) route to investing in gold at current levels as it may see some consolidation after the recent surge.
While some experts believe that gold prices should hit lower, others believe that any correction between 3% and 5% in domestic gold prices is a good opportunity for buying, and that gold prices have further upside potential. Investors should weigh their investment goals and risk appetite when considering investing in gold.
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