Gold spikes well above $2000 mark

Published on Apr 05, 2023 13:25

Gold saw a wild surge yesterday as the US dollar index tanked and the metal saw a forceful break higher after breaking above $2000 per ounce mark convincingly. The US dollar index extended its recent losing streak and tanked near 101 mark, testing a two month low. Dollar lost out as market set itself up for the upcoming US nonfarm payrolls data. A reading on the labour market yesterday turned in negative for the US currency as job openings fell below 10 million in February for the first time in nearly two years. Available positions totaled 9.93 million, a drop of 632,000 from January’s downwardly revised number, the Labor Department reported Tuesday in its monthly Job Openings and Labor Turnover Survey.

While this may not be an indication of a downside surprise in the nonfarm for March, it is indicating a softening labour market and was good enough to take a toll on the US currency. Gold galloped as a result, firming up by around 2% to approach one year high of $2040 per ounce. The metal quotes around the same mark right now. MCX Gold futures, which had managed to just close above Rs 60000 per 10 grams mark on Monday, had a roller-coaster ride in the shortened session yesterday, approaching fresh highs above Rs 61000 per 10 grams and ending at Rs 60954 per 10 grams, up 1.56% on the day.