Gold soars to one year high on global liquidity boost

Published on Mar 20, 2023 17:37

MCX Gold futures soared above Rs 60000 per 10 grams today as firm global Gold prices jumped to one year high. The commodity has been in a strong upmove and broke above $2000 per ounce mark today as rising wave of global liquidity following the banking crisis in the US and Europe boosted the metal. Major central banks have moved to keep credit flowing after the Credit Suisse merger with UBS. Six central banks, including the Bank of England, announced they would boost the flow of US dollars. The US dollar liquidity "swap line" arrangement will run from Monday. In a statement the Bank of England, Bank of Japan, Bank of Canada, the European Central Bank, US Federal Reserve and Swiss National Bank launched the co-ordinated action to "enhance the provision of liquidity. The announcement said it served as an "important backstop to ease strains in global funding markets" and to lessen the impact on the supply of credit to households and businesses.