Bullions continue surge, with gold on domestic front hitting a new life time high of over Rs. 60,000 Says Mr. Navneet Damani, Motilal Oswal Financial Services
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
https://t.me/InvestmentGuruIndiacom
Download Telegram App before Joining the Channel
Below is perspective on Gold By Mr. Navneet Damani, VP – Commodities Research, Motilal Oswal Financial Services
“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. The collapse of Silicon Valley Bank in the U.S. has highlighted banks' vulnerabilities to sharply higher rates, while a rout in Credit Suisse shares has added to the market turmoil. On other hand, after ECB announced a 50bps rate hike last week, all eyes are now on Fed's policy meeting scheduled later this week. Fed is expected to raise rates by 25bps, however probability for a pause is increasing sharply supporting the move in safe haven assets. Over the weekend, there were quite a updates regarding the US banking concerns which slightly weighed on the safe haven assets. UBS agreed to buy 167-year-old Credit Suisse for $3.23 billion and assume up to $5.4 billion in losses in a deal backed by a massive Swiss guarantee and expected to close by the end of 2023. Meanwhile, major central banks including Fed, ECB, BOJ, BOE announced a co-ordinated central bank action to enhance liquidity via USD-Swap line. These updates are likely to keep the volatility high. Broader trend on COMEX could be in the range of $1985- 2015 and on domestic front prices could hover in the range of Rs. 59,800 – 60,600 could be expected.”
Above views are of the author and not of the website kindly read disclaimer
