Gold prices down nearly 2% after hitting all-time high, here's why
Gold and silver prices Today on 22-03-2024 : Check latest rates in your city Back home, gold prices plummeted by ₹875 to reach ₹66,575 per 10 grams in the national capital on Friday, influenced by subdued trends in global markets. In the preceding trade, the valuable metal had reached a settlement price of ₹67,450 per 10 grams. The rise in the dollar pushed it to its highest level in a month, thereby increasing the cost of gold for holders of other currencies.
"Gold prices are down nearly 2 per cent from their all-time hit yesterday weighed by profit-booking/ long liquidation, and a sharp rebound in the US dollar index above 104, following events like rate cuts by the Swiss National Bank, better than expected PMI and housing data from the US," said Pranav Mer, VP - Research (Commodity & Currency) BlinkX and JM Financial. Gold prices reached a fresh all-time high on Thursday, marking the fifth instance this month. This surge occurred amidst statements from Federal Reserve members affirming their intention to implement a three-quarters of a percentage point rate cut this year, despite the latest indications of robust inflation.
“Gold prices experienced a correction over the last two days, influenced by a rise in the dollar index and profit booking following a strong bullish rally in March, which saw prices climb from ₹63,000 to ₹66,900. Despite this correction, the overall outlook for gold remains positive. However, some volatility and further correction may be expected in the near term.
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