Gold Prices In Indian Market Rise Again, Check Details Here

Daniel Fowler
June 26, 2020

Gold prices rallied to a more than 7.5-year high on Monday as investors continued to buy the precious metal amid concerns over the strength of the economic recovery and that unprecedented stimulus would lead to inflation down the road.

On Multi Commodity Exchange, gold futures for the August month traded Rs 352 higher at 48,289 per 10 gm, also its day's high against the earlier close of 47,937.

"Spot gold prices for 24 karat in Delhi were trading down by Rs 85 amid rupee appreciation", HDFC Securities Senior Analyst (Commodities) Tapan Patel said. "That has caused a little bit of concerns of another shutdown, which is benefiting gold", said Jeffrey Sica, founder ofCircle Squared Alternative Investments.

"After trading in a broad range of $1,680-1,750/oz, COMEX gold finally broke out on the upside supported by safe-haven buying amid increasing coronavirus cases, US-China tensions and geopolitical issues".

In the previous trade, the yellow metal had closed at ₹ 48,988 per 10 gram. Silver has also increased by Rs 966 per kg.

"General risk aversion is helping the market, we are seeing pressure on growth exposed currencies and on share markets".

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"Policy uncertainty aside, we believe that debasement fears remain the key driver of gold prices in a post-crisis environment such as this", Goldman's analysts said in a note.

"Yesterday, gold prices made a lifetime high of 48,289 levels on MCX and in the worldwide market, it touched the 5 week's high of $1,763 per ounce".

On the MCX, gold on June 22 hit a record high of Rs. 48289 per 10gm. USA gold futures were up 0.3% to $1,771.20 per ounce.

Also the new security law in the Hong Kong are supporting gold price as there is pointed that Beijing will exercise powers in its administration.

Nine private banks spoken to by Reuters, which collectively oversee around $6 trillion in assets for the world's ultra-rich, said they had advised clients to increase their allocation to gold.

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