New Delhi, March 20 (TriNew)
The US banking crisis as well as the Ukraine conflict pushed gold prices to record highs in the country. On Monday, the price of gold on the Multi Commodity Exchange (MCX) crossed Rs 60,000 per 10 grams for the first time. It rose by Rs 976 to Rs 60,359. Colin Shah, MD, Cama Jewellery, said, “Gold prices reaching this high is indicative of slow economic growth and low interest rates coupled with adequate liquidity, which will help the system move out of the current situation.” He said that we expect gold to rise further in the next few months and it will touch new highs. Domestically, it is expected to trade in the range of Rs 61,000-62,000 per 10 grams. In the last one month, gold prices have increased by about 8 percent.
Apart from the banking crisis and the Ukraine conflict, another reason is that central banks are not expected to raise interest rates. It is shifting excess money into gold. Apart from the common man and investors, central banks are also adding to their gold reserves. Agreeing with Shah, MK Global Financial Services also said that fears of recession in the west and geopolitical tensions will push up gold prices. Gold has been trading in the range of $1,800-$1,880 for the last one month.