At Rs 62,000, gold at a new high – Times of India

MUMBAI: Two days after the price of gold scaled a six-month high in the international market, the yellow metal went past the Rs 62,000/10gm mark in India.
For the first time, gold was trading at around the Rs 62,250-mark in Mumbai’s bullion hub. A host of global and domestic factors, including weakness of the dollar against some of the major currencies, a sharp fall in US gilt yields, and the higher demand during the ongoing wedding and festive seasons, are supporting the price of gold, market players said.

In the domestic and international markets, the price of the yellow metal has risen by more than 10% in the last two months, official data showed.This could lead to some profit taking from the current level, in the short term, technical analysts said.
According to Rahul Kalantri, VP, commodities, Mehta Equities, there are at least five reasons for the current rally in gold. For one, the dollar index – a measure of the greenback’s relative strength against six major currencies – has fallen sharply in the last few weeks. Second, US government bond yields have also come down sharply from about the 5% level (a 17-year high) to below 4.3% now, in just over a month. Then, there are expectations that the rate hike cycle by the US Federal Reserve is already over and the first rate cut could come by mid-2024.
On the domestic front, strong demand, along with RBI‘s gold buying operations, are supportive of its price, Kalantri said.