Analysts believe that rising COVID-19 cases, geopolitical instability, weak US dollar and expectations of fresh economic stimulus are providing support to the gold prices
Gold prices on Wednesday touched a new record high level of Rs 48,333 in early morning deals on the back of rising coronavirus cases which boosted the demand for the safe-haven. Since March of Rs 38,500 per 10 grams, Gold prices have rallied over 25 per cent to scale a new high today. Around 10 AM, gold August futures were trading at Rs 48,264 per 10 grams, while silver Julu futures were ruling lower at Rs 48,770 per kg on MCX. “MCX gold prices re-tested new lifetime high of Rs 48333 in today’s opening trade as investors remained cautious due to a surge in the number of coronavirus cases in the US,” Ajay Kedia, MD, Kedia Advisory, told Financial Express Online. He also added saying that the prices of the precious metal also got support as the dollar weakened and concerns about the US-China trade deal resurfaced.
Analysts believe that rising COVID-19 cases, geopolitical instability, weak US dollar and expectations of fresh economic stimulus are providing support to the gold prices. “We expect gold will trade higher further. It may test $1800 to $1830 levels soon. For traders it is recommended to buy gold at 48000 to 48100 levels, with the stop loss of 47700, for the target of 48600 to 48800 levels,” said Anuj Gupta.
Meanwhile, India reported the highest single-day spike of 15,968 new coronavirus cases with 465 deaths in the last 24 hours. Total cases in the country stand at 4,56,183 with a death toll at 14,476. “In the international market gold prices touched the 8 years high of $1773 per ounce. Safe-haven demand, investment demand due to coronavirus pandemic and weakness in major economies boosted the gold prices,” said Anuj Gupta (DVP–Commodities & Currencies Research, Angel Broking).
Yellow metal prices today have surpassed its previous record high of Rs 48,289 per 10 grams hit earlier this week. Even the strong rupee has put pressure on the price of the yellow metal, says Jigar Trivedi, Fundamental Research analyst, Anand Rathi Shares and Stock Brokers. “Sentiments are positive for yellow metal today. Gold has appreciated by 24% this year (25% in 2019) hence we are cautiously optimistic,” Trivedi added.
Globally, spot gold was up 0.2% at $1,769.76 per ounce. US gold futures rose 0.2% to $1,785.80. Palladium edged up 0.1% to $1,926.06 per ounce, platinum dropped 0.4% to $825.59 and silver fell 0.4% to $17.89. Holdings at the SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.28% to 1,169.25 tonnes on Tuesday.