Gold prices in India hit a fresh record high for the second day in a row on Monday, tracking global rates in the international market. As US-China trade tensions escalated and the impact of coronavirus pandemic on the economy continued to worry investors, gold prices surged. Gold prices have risen 24.45 per cent to Rs 47,929 per 10 grams from its March low of Rs 38,500. “Gold has emerged as one of the best performing asset classes in 2020, gaining 15% year to date with prices hitting an all-time high in India,” Ajay Kedia, MD, Kedia Advisory told Financial Express Online. “The buying spree has continued in 2020 as well on increasing fears of recession due to the coronavirus pandemic,” Kedia added.
On MCX, the gold June futures were trading at Rs 47,860 per 10 grams, up Rs 479 or 1.01 per cent, While silver July futures were ruling Rs 1,580 or 3.38 per cent higher at Rs 48,298 per Kg. Silver prices have gained around 44 per cent from its March low of Rs 33,580 per kg. “In international market gold was trading above its 7-year high level of $1760. As expected, safe-haven demand supported the gold prices,” Anuj Gupta, Deputy VP- Commodities & Currencies Research, Angel Broking Ltd, said.
Globally, spot gold was up 0.9 per cent at $1,756.79 per ounce. US gold futures gained 0.5 per cent to $1,765.70. SPDR Gold Trust holdings, the world’s largest gold-backed exchange-traded fund, rose 0.8 per cent to 1,113.78 tonnes on Friday. Palladium slipped 0.5 per cent to $1,892.25 per ounce. Among other precious metals, Platinum gained 0.7 per cent to $803.19, while silver rose 2 per cent to $16.96.
Gold to touch Rs 50,000 per 10 grams this year
“We remain bullish on gold over the longer term as concerns of sustained global economic growth continue to linger,” Kedia said. He further advised that investors can look for the investment in the yellow metal as gold will continue to hog the limelight. “It will remain a reliable hedge against inflation and store of value against ever depreciating paper currencies. Internationally, we see gold to test a level of $2000 soon in 2020 while on MCX, prices can see Rs 50k,” he added.