Gold prices at an all-time high, crossed Rs 60,000 mark on March 20, but why? Know here

Gold prices touched a lifetime high of Rs 60,100 per 10 grams in the national capital on Monday, March 20, due to strong global trends. The yellow metal had closed at Rs 58,700 per 10 grams in the last trading session. However, on Tuesday, gold price fell by Rs 470 to Rs 59,480 per 10 grams in the national capital.

On March 21, however, Gold prices fell by Rs 245 to Rs 59,261 per 10 grams at 4:10 pm in futures trade as speculators reduced their positions.

"Spot gold prices in the Delhi markets traded at Rs 59,480 per 10 grams, down Rs 470 per 10 grams," Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said.

On the Multi Commodity Exchange, gold contracts for April delivery traded lower by Rs 245 or 0.41 percent to Rs 59,261 per 10 gram in a business turnover of 8,322 lots. According to the analysts, the fall in gold prices is due to the trimming of positions by participants.

Silver on March 21 was trading at 68,550 per kilogramme. In the overseas market, gold and silver were trading at USD 1,967 per ounce and USD 22.39 per ounce, respectively. Comex gold prices also traded lower in Asian trading hours.

"Gold prices have corrected almost 2 percent after prices hit a fresh 52-week high of USD 2,010 per ounce on March 20 as short-term traders took profit and fears of a full-blown banking meltdown eased," Gandhi said.

Gold price rise: Why did gold price surge to an all-time high on Monday?

The uptick in gold price is believed to be due to global trends and the weakening of the Indian rupee against the US dollar. The global bank crisis has also contributed to the increase in the price of yellow metal as gold is considered a safe haven asset. High domestic demand has also contributed to the gold price rise. 

Motilal Oswal Financial Services, Senior VP (Commodity Research) Navneet Damani, said, "Bullions continue surge, with gold on domestic front hitting a new life-time high of over Rs 60,000, as a wave of banking crises shook global markets and put bullion on track for its biggest weekly rise in three years, while bets solidified for a less aggressive Fed in its fight against inflation."

Check Gold prices in Delhi, Mumbai, Chennai, Hyderabad, Kolkata and Bengaluru