Gold prices on Wednesday hit a record high, buoyed by a rally in the global markets as the yellow metal finds favour as a safe-haven investment amid rising coronavirus cases.
At the MCX, August gold futures hit a high of Rs 48,982 per 10 gram.
“Gold prices on MCX gained on Wednesday and made a lifetime high, tracking gains from international gold futures which rose above $1,800 per ounce for the first time in more than eight years as low interest rates and a resurgence in coronavirus cases drive demand for the metal as a haven,” Ajay Kedia, director of Kedia Advisory, said.
According to Rahul Gupta, head of research-currency, Emkay Global Financial Services, during unprecedented times, traders prefer to take the shelter in safe-haven assets such as gold and it is generally considered as a traditional hedge.
``The fears of rapid coronavirus and its impact on global growth and rising geopolitical tensions between India-China, US-China and US-European Union has increased the demand for gold. Moreover, rise in crude oil prices and hike in gold ETFs holdings, provided support to gold price. As countries around the world are easing the lockdown and Governments and central banks are providing stimulus to support economies, there has been a cap to the gold rally’’, he added.
Meawhile, in spot markets, the precious metal zoomed Rs 647 to Rs 49,908 per 10 grams in the national capital in line with the international prices of the precious metal, according to HDFC Securities. In the previous trade, it had closed at Rs 49,261 per 10 gram. Silver also jumped Rs 1,611 to Rs 51,870 per kg, from Rs 50,259 per kg on Tuesday.
