The gold market in Ahmedabad surged when the price of the resplendent metal touched Rs 63,500 per 10 grams, up by Rs 700 in a single day, a record high in the city.
The US Federal Reserve’s policy decision to hike interest rates by 25 basis points impacted both international and domestic markets. It’s been widely reported that the Fed upped interest rates by a quarter percentage point to quell inflationary pressures that have kept price rises well above its 2% target.
Gold price, which benefits from rise in safe-haven investments, hovered around $2,042.58 per troy ounce in the global market.
Haresh Acharya, director, India Bullion, and Jewellers’ Association (IBJA), told a national daily, “Rising concerns over worsening economic conditions, the growing pressure on US-based banks along with slowing growth have led to an increasing number of investors turning to gold as a safe-haven asset. As a result, the prices went up.
“The overall demand for gold on retail counters continued to remain muted on account of the high prices. However, investors are bullish about further spike in gold price and as a result are investing significantly in gold.”
“The US Fed’s indication of a possible rate hike pause in the next meeting gave an upward momentum to gold prices, as the dollar index drifted lower.”
Citing data by the Ahmedabad Air Cargo Complex (AACC), the report added that 4.59 metric tonnes (MT) of gold was imported into Gujarat in April.
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