Gold hits a new record, best month in over 3 years

(This story originally appeared in on Mar 30, 2024)HYDERABAD: A week after it vaulted over the $2,200/oz mark in international markets for the first time, touched yet another life-high of $2,236 in the wee hours of Friday. In March, it has gained 9.3%, logging its best month since July 2020 (see graphic).

Though MCX remained closed on account of Good Friday, prices of 24k gold were quoting above Rs 70,000 per 10gm (including import duty & GST) in the local market. With the yellow metal closing at an all-time of $2,233, national secretary Surendra Mehta said it may well open $30-40 higher on Monday.

"Gold has gone off the charts. If it keeps growing at this rate, it will become more of an investment commodity than a consumer item. Once that happens, it will only go up higher," said Mehta, pointing out that the latest jump could be attributed to heavy buying by China in addition to buying by central banks of other countries.

Avinash Gupta, former director of All India Gems & Jewellery Domestic Council, said prices are moving on technicals only as there is no change in fundamentals except for increased buying by central banks. "The technical support is so strong that now, we are looking at $2,350." But the more gold dazzles, the more it loses its sheen for jewellery consumers. "Jewellery business is down everywhere to just 30% of normal levels due to rising prices," Gupta said.