Gold surges to record high, supported by weaknesses in dollar index & purchases by central banks

prasar bharati daily news service

Gold reached an all-time high in the domestic bullion market on Monday, opening above the level of 55,800 per 10 grams for the first time. Prior to this, the all-time high record for gold was 56,600 per 10 grams. Owing to geo-political circumstances, there has been a steady rise in the price of gold in January. The shiny metal has been successful in crossing the level of 56,000 per 10 grams several times during the month. Even on January 13, gold had reached the level of 56,462 per 10 grams. But on Monday, gold made a new record. Silver also jumped by more than 1,100 per kg in the trade. Due to this rally, silver once again crossed the level of 69,000 per kg.

According to the information provided by the Indian Bullion and Jewelers Association (IBJA) sourced by the HS, the average price of 24 carats (999) of gold rose by 352 to 56,814 per 10 grams (provisional) in the domestic bullion market.

Similarly, the price of 23 carats (995) of gold also strengthened by 351 to 56,587 per 10 grams (provisional). While the price of jewellery i.e. 22 carats (916) of gold rose by 323 per 10 grams. With this, 22-carat gold reached the level of 52,042 per 10 grams (provisional). Apart from this, the gold price of 18 carats (750) rose by 264 per 10 grams to 42,611 per 10 grams (provisional). While 14 carat (585) gold strengthened by 206 to reach the level of 33,236 per 10 grams (provisional).

Prices of silver also increased

Along with the price of gold in the bullion market, the price of silver also increased. In Monday’s trade, silver (999) gained strength by 1,121 per kg. Due to this jump in the price, the price of this lustrous metal crossed the level of 69,000 to reach the level of 69,236 per kg (provisional).

Weakness in the dollar index supports gold

Experts say that due to the weakness in the dollar index, the price of gold has got support globally. In the month of October this year, the dollar index reached the level of 114, while now the dollar index has come down to the level of 102. Due to the fall in the dollar index, where the prices of gold and silver have got support, the position of the Indian currency rupee has also strengthened.

Large-scale purchases by central banks

According to market expert Mayank Mohan, along with the fall in the dollar index, one of the reasons for the rise in the price of gold is the large-scale purchase of gold by central banks around the world. Due to the uncertainty created in the global economy, most of the countries around the world are trying to strengthen their gold reserves.

Since 2022 till now, the central banks of many countries have bought about 400 tonnes of gold, due to which the price of gold has got a lot of support. It is believed that if the current pace of improvement in the global economy continues, then this year gold can go up to the level of 64,000 per 10 grams.

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