Gold prices crossed record high on Wednesday on the futures trade. Traders and analysts believe that the soaring prices of the commodity was due to the American banking crisis, that led people looking for safe haven to park their funds. 

Analysts, also atrributed that Fresh positions built up by participants to be one of the causes of the yellow metal’s rise in price.

On Monday’s trade in the Multi Commodity Exchange (MCX) gold prices rose by Rs 976 to Rs 60,359 per 10 gram in futures trade as investors opened new positions in response to strong spot demand.

Gold futures for April delivery increased by Rs 976, or 1.64 percent, to Rs 60,359 per 10 gramme on the Multi Commodities Exchange, where 8,789 lots were traded.

Globally, gold was priced at USD 2,020.70 per ounce, up 1.53 percent.

Meanwhile Shobhit Mehrotra, Head-Fixed income, HDFC AMC sharing his outlook for Indian Fixed Income Market in the view of the abrupt failure of two regional banks in the US along with turmoil in a large European bank said that  collapse has significantly raised fear of contagion risk spreading across the financial sector.

“Risk-off sentiments triggered by these events are likely to result in USD strengthening against most currencies including INR. However, India’s adequate foreign exchange reserves could help curb volatility. Over medium term, correction in commodity prices especially Oil and resilient services exports are likely to support INR as the situation stabilises,” Mehrotra added.