Gold Rate Today: Gold is going to cross 60,000 soon, know why the prices are galloping – gold prices at all time high
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Fed’s soft stance has an effect
Ever since the US central bank started raising interest rates, the dollar has strengthened. This led to a fall in gold prices. As a result, from the March 2022 high of $1950 an ounce, gold fell to $1636 an ounce in October. Ever since the Fed’s stance on interest rates hike has softened, gold has started rallying since then. This is happening because of the fall in the dollar. Talking about the domestic spot market, gold fell below Rs 50,000 per 10 grams in October-November 2022. Since then gold has seen a boom.
The US Fed has indicated a slower rate hike. This is causing a fall in the dollar which is good for gold. Concerns about recession in western countries are also supporting gold.
Collin Shah, Founder & MD, Cama Jewelery
gold shines in recession
The biggest reason for the rise in gold is the fall in the dollar. Colin Shah, Founder and MD, Cama Jewellery, said, “The US Fed has indicated a slower rate hike or the last rate hike could be 0.25 per cent.” Shah said, ‘Concerns about the recession in western countries are also supporting gold.’ Gold remains a safe haven metal due to recession concerns in the US and Europe. According to Ravindra Rao of Kotak Securities, ‘Gold prices have rallied in the US during recessions 5 out of 7 times since 1973.’ Rao says that there is a possibility of recession in the year 2023 as well and it is a good time to sleep.
In the US since 1973, gold prices have rallied 5 out of 7 times during a recession. Gold is the top performer among all assets even during periods of stagflation.
Ravindra Rao, Kotak Securities
In the year 2023, the price of gold can go up to 62,000 and the price of silver can go up to 90,000.
Ajay Kedia, MD, Kedia Advisory
62,000 is the target
The Kotak Securities report further said, “As per research by the World Gold Council, gold is the top performer among all assets during periods of stagflation. Stagflation can be seen in the first quarter of the year 2023. In the global market, gold can cross its all-time high of $ 2,078 an ounce. In the domestic market, Rao has given a target of 60,000 to 62,000 for 2023.
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