The price gain for gold and silver continued for another session in both the international and domestic markets due to the weak US dollar and a new wave of bank crises in the US.
The intraday high for the gold futures contract for June 2023 on the Multi Commodity Exchange (MCX) was Rs. 61,629 per 10 gm, which is Rs. 216 less than the all-time high of Rs. 61,845 levels that the yellow meal attained yesterday.
The July 2023 silver futures contract also started off stronger and eventually reached a new lifetime high on the MCX of Rs. 78,292 per kg.
Experts in the commodities market claim that the US dollar's weakness and the recent bank crisis in the US, which was caused by PacWest Bancorp and Western Alliance Bancorporation, are to blame for the increase in gold and silver prices. PacWest Bancorp said on Thursday that it was looking into strategic options, including a sale.
Anuj Gupta, Vice President of Research at IIFL Securities, commented on the causes of the ongoing increase in gold and silver prices, saying, "Gold and silver prices are in uptrend due to fresh bank crisis in US after PacWest Bancorp announced that it was evaluating strategic options, including a sale. The US economy has slowed down as a result, further weakening the US dollar, which was already under selling pressure following the US Fed's announcement of a rate halt.
Sugandha Sachdeva, a market expert, linked the likely weakening in the Indian National Rupee to the present rise and the prices of gold and silver, stating that the suspension of negotiations between India and Russia for bilateral trading agreements in Indian rupees "may have a short-term negative impact on the rupee." The decision to halt negotiations comes as India has been importing large amounts of discounted oil from Russia. Our total oil imports have increased to USD 51.3 billion since Russia invaded Ukraine on February 24, 2002, up from USD 10.6 billion in the same period before to the attack.
Commodity Market Watch: Gold slips amid global cues, silver rate up
Central banks around the world are focusing more on gold and less on the US dollar
